LONDON, United Kingdom — Shein, the Chinese-founded online fast-fashion giant, could issue plans this week for a London stock market listing valuing it at £50 billion ($64 billion), media reports said on Monday.
A source close to the matter told AFP that the retail titan could reveal “as early as this week” its initial public offering (IPO) in the British capital.
Another source told AFP the UK filing would be a confidential IPO, which affords companies more flexibility and the ability to hold back information on future strategy ahead of floating.
It could, however, take several months to finalize the launch of a London IPO, the second source added.
The blockbuster move for Shein — which attracts legions of shoppers with ultra-low prices and rapidly-produced clothes — would come after it faced opposition for a New York listing amid US-China tensions.
The Financial Times reported that Shein could file plans with UK regulators in the coming days.
Both Shein and the London Stock Exchange did not respond to requests for comment.
Election fodder
Monday’s reports came after UK finance minister Jeremy Hunt told Sky News in February that he discussed a London IPO with Shein executive chairman Donald Tang.
Hunt’s governing Conservatives are currently trailing far behind the main opposition Labour Party ahead of a general election on July 4.
“Confirmation of (the) listing may be fresh election campaign fodder for the Conservatives, who are likely to say it demonstrates that government efforts in wooing firms to launch IPOs in London are paying off,” noted Hargreaves Lansdown analyst Susannah Streeter.
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The Times on Monday reported that Labour has also held talks with Tang over the matter, as the opposition attempts to strengthen its business credentials.
In addition, the daily newspaper said French government ministers had also attempted to persuade Shein to pick Paris instead of London.
Shein, founded in China and based in Singapore, has quickly conquered the global fast fashion market by catering to young customers through social media.
‘Significant criticism’
The firm has been accused of exploiting unpaid labor, obscuring production processes, and encouraging overconsumption as it faces the wrath of environmental and human rights activists.
“Shein has come under significant criticism for the huge volumes of cheap clothes it produces, the lack of transparency in its supply chain, and its appropriation of other designers’ work. Given these concerns, investors could be wary,” cautioned Streeter.
READ: Online retailer Shein is latest to face strict EU digital regulations
A recent study, published by the US-Canadian campaign group Stand Earth, named Shein as the worst offending global fast-fashion brand in terms of its environmental impact.
The European Union recently added Shein to its list of digital companies that are big enough to come under stricter safety curbs.
Shein is meanwhile not required to publish annual earnings because it is not yet a listed entity.
However, it enjoyed $23 billion in revenue and $800 million in net profit in 2022, according to The Wall Street Journal.
The company joins Facebook, TikTok, X, YouTube, and others on a list of “very large online platforms” that have more than 45 million monthly active users in the EU.