Shein is actively preparing for a potential IPO in London, increasing its collaboration with major banks.
- Barclays Plc and UBS Group AG join Goldman Sachs, JPMorgan Chase, and Morgan Stanley in Shein’s IPO preparations.
- The IPO, estimated to value Shein at £50bn, faces significant scrutiny and criticism over legal and ethical practices.
- Shein has engaged in informal roadshows to address investor concerns in Europe recently.
- The timeline for Shein’s IPO remains uncertain, with discussions ongoing and subject to change.
Shein, the renowned fast fashion retailer, is taking decisive steps towards a potential initial public offering (IPO) on the London Stock Exchange. In a strategic move to fortify its financial team, Shein has appointed Barclays Plc and UBS Group AG as bookrunners, complementing its existing collaboration with Goldman Sachs, JPMorgan Chase, and Morgan Stanley. This ensemble of financial institutions signifies Shein’s commitment to ensuring a robust and comprehensive IPO strategy.
The proposed IPO could see Shein valued at approximately £50 billion. However, the company’s ambitions are facing considerable challenges. Industry leaders have voiced concerns regarding Shein’s reliance on a legal tax loophole that benefits its overseas shipments, potentially granting the company an unfair market advantage. Additionally, Shein’s labour practices have come under scrutiny, prompting further debate among stakeholders and commentators.
Amidst the preparation activities, Shein has undertaken informal European roadshows aimed at reassuring investors and addressing their pressing inquiries regarding the company’s practices and future prospects. These roadshows serve as a platform for Shein to engage directly with its investor base, attempting to pave a clearer path towards its ambitious London listing.
Despite these comprehensive efforts, the timeframe for Shein’s official entry into the market remains fluid. Sources indicate that while there is optimism for an early next-year listing, deliberations are still ongoing, with various factors potentially influencing the eventual schedule and structure of the flotation.
Shein’s path to a London IPO is marked by strategic financial alliances and ongoing scrutiny, underscoring the complexity of its ambitious plans.
