Shein considers listing below 10% rule in London float
If permitted, it would likely mark the first time that a company in London has been allowed to list below the 10% rule
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Shein is reportedly considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public ahead of its planned London flotation.According to Reuters, a source said the fast-fashion company was exploring this option to facilitate its IPO.
If permitted, it would likely mark the first time that a company in London has been allowed to list below the 10% rule.
London changed its listing rules in 2021 in a bid to attract more companies, with the proportion of shares required to float cut from 25% to 10%, reducing potential barriers for large IPOs.
Shein confidentially filed with the Financial Conduct Authority (FCA) in June for a London listing.
However, according to Reuters, the financial regulator is taking longer than usual to approve its application. The FCA is reportedly looking into Shein’s supply chain after receiving a challenge against the listing from an advocacy group for China’s Uyghur population. Shein is also said to be awaiting approval from China’s securities regulator.
Shein was valued at $66bn (£52bn) in a fundraising round last year, meaning a 10% flotation at that valuation would make the IPO worth $6.6bn (£5.2bn).
The current valuation of Shein and how much it is looking to raise via the London listing was not immediately known, Reuters said.
Shein has been contacted for comment.
