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Shein confidentially filed paperwork to launch its £50bn IPO in London earlier this month, sources have told Reuters and CNBC, despite recent rumours that the float could be scrapped amid pressure from Chinese officials.
According to sources, it is “not immediately clear” when Shein plans to launch the IPO. However, the fast-fashion retailer has reportedly updated China’s securities regulator officially about its change of listing venue.
The company is yet to receive a green light from the China Securities Regulatory Commission (CSRC), one of the sources added.
With approval from both the FCA and CSRC, Shein would be able to publicly file an intention to float on the London Stock Exchange.
The latest development comes despite reports this week that Shein could ditch plans for its float in London amid growing concerns in China over how the retailer is portrayed in the UK.
According to The Mail on Sunday, criticisms of Shein rattled high-ranking officials in the Chinese government. The criticisms were said to have come from politicians, the press, other retailers and investors.
The retailer has previously been criticised for using suppliers who exploit low-paid garment workers. While the group is based in Singapore, its pieces are manufactured in China and as a result, it needs approval from Beijing regulators to list its shares in London.
A source told the Mail that Beijing authorities might apply pressure on Shein to list in Hong Kong instead of London.
Earlier this month, it was reported that Shein was eyeing a London flotation that would value the fast-fashion company at £50bn.
According to Sky News, the company planned to file a prospectus with the Financial Conduct Authority for approval ahead of the potential float.
Last month, it was reported that Shein was ramping up its move towards a London IPO after its attempt to float in New York faced regulatory hurdles. One source said that Shein planned to update China’s securities regulator on changing the IPO venue and file with the London Stock Exchange.
According to previous reports, the fast-fashion company started exploring the London option earlier this year in case US regulators blocked the option of a US flotation due to its ties to China.
Shein and the FCA have been contacted for comment.
