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The online fashion giant Shein is planning to confidentially file for a London listing as soon as the coming days, laying the groundwork for a blockbuster initial public offering in the UK.
Shein is set to file privately with UK regulators its intention to float, according to people familiar with the matter, who cautioned that timing on the filing could yet shift.
Shein had been leaning towards a London listing after tensions between Beijing and Washington stalled its plans for an IPO in New York.
Shein’s executive chair Donald Tang told the Financial Times last month that the Singapore-domiciled company had made “progress” on changing the perception that China controlled Shein “but not enough” to win over US lawmakers.
The company had previously filed preparatory paperwork with the Securities and Exchange Commission more than six months ago, but concerns about Shein’s ties to Beijing became the biggest hurdle in the path to a US listing.
A confidential filing involves submitting preliminary information and does not necessarily mean a flotation is imminent. It will allow Shein to be ready to list more quickly if the company decides to go ahead.
The on-demand ecommerce group was valued at $66bn in its last funding round, and landing a flotation of Shein’s size would be a coup for the London Stock Exchange. London has been losing listings to its larger and more liquid New York rivals, the New York Stock Exchange and Nasdaq.
Shein was founded in China and most of its suppliers are in the country. However, it is now headquartered in Singapore and does not sell its products in China.
The company hit a record of more than $2bn in profits for 2023, surpassing the $700mn of net income it generated in 2022 and $1.1bn in 2021. By comparison, rivals H&M and Zara owner Inditex reported net profits of SKr8.7bn ($820mn) and €5.4bn ($5.8bn), respectively, in their most recent fiscal years.
Sky News previously reported the filing plans on Sunday. Shein declined to comment.