London’s Stock Exchange is set to welcome a new player as fast fashion giant Shein, based in China, moves to be listed on the UK exchange. In early June, the company submitted the necessary documents for listing to the UK’s financial regulator, according to reports from Reuters. The move comes after negotiations for a London Stock Exchange listing began earlier this year.
Shein had initially considered listing on the New York Stock Exchange but opted for London due to challenges faced in the United States. The company’s decision was influenced by the complicated international political landscape and despite having moved its headquarters from China to Singapore a few years ago, Shein still primarily operates in mainland China. The Chinese government’s reluctance to allow Chinese companies to list on Wall Street has caused delays for Shein as it awaits approval from Chinese authorities.
If the listing goes through, it could be one of the largest stock market listings globally this year. According to Bloomberg, Shein’s IPO in London could inject some much-needed life into Britain’s struggling IPO market. In previous years, new IPOs in the UK only managed to raise around one billion dollars in funds, making Shein’s potential listing a significant development for the London Stock Exchange.
