Shein confirms plans for huge stock market float - and could pick London

Shein, the fast fashion behemoth, has confirmed its intentions to pursue an initial public offering (IPO), with London being a potential location for its listing. The company's chief executive, Donald Tang, spoke to The Times about the desire to go public as a means to bolster "accountability and transparency."

While Shein had not previously set a firm date for its IPO, it is understood that the company engaged with the Financial Conduct Authority (FCA) last summer, amidst complications surrounding a US listing, as reported by City AM.

Tang declined to provide details on the timing or expected valuation of the IPO but stated that Shein would list "whenever it's appropriate."

Founded in 2012 in China and now headquartered in Singapore, Shein has been under fire for its environmental footprint and labour conditions.

However, Tang defended the company, asserting that Shein "democratises" fashion and adheres to local regulations while maintaining low inventory levels to minimise waste.

Acknowledging the UK as one of its top markets, Tang praised British regulators for their impartial approach to regulation, distinct from political influence.

Shein has also joined the Confederation of British Industry (CBI), alongside major players like Shell and AstraZeneca, to reinforce its commitment to the UK market.

This news of a possible London IPO comes at a time when the UK capital is facing challenges in attracting significant listings, with several companies preferring the New York Stock Exchange over the London Stock Exchange, including names such as Flutter and Arm.

A potential Shein initial public offering (IPO) could significantly bolster London's financial sector.

The company, a leader in fast fashion, was valued at a remarkable $66bn (£51.05bn) in 2023 and has been navigating intensifying competition from rivals like Temu.

Initially eyeing a New York IPO in 2024, Temu changed course to London after failing to secure the necessary approvals from US regulators.

Despite whispers of a near 40 per cent plummet in 2024 net profit, company spokesperson Tang firmly dismissed such rumours, asserting that growth metrics have continued to be robust.

Shein's trajectory might still be steered by shifts in US policy; for instance, former President Donald Trump's proposal to impose new limits on tariff-free imports from China could affect the firm's principal market.