Yahoo Finance Shein favours London for blockbuster IPO as China fears spike New York float
Ultra fast-fashion retailer Shein could favour London instead of New York for its blockbuster IPO, as bosses at the global retailer failed to convince US lawmakers it is not controlled from China.
Executive chair Donald Tang told the Financial Times the Singapore-domiciled company had “made progress” in shooting down this belief but not enough to fully win them over.
Six months ago the disruptor in the low cost fashion space filed preparatory paperwork with the US Securities and Exchange Commission.
However, Shein is being probed by the House Select Committee on the Chinese Communist Party for ties to Beijing and its data privacy practices, damaging plans for a listing in New York.
Sources familiar with the situation told the outlet it may now begin prioritising its backup listing in London.
Last week, Reuters said Shein had started engaging with the London-based teams of its financial and legal advisors to explore a listing in the City earlier this year.
Tang said: “We want to explore all the options.“No decision has been made.”
A spokesperson for Shein declined to comment.
If the listing went ahead, it would be seen as a major boost for London’s financial market after waving goodbye to a number of high profile businesses such as TUI.
Shein is said to be valued at $66m (£52m).
While a mega success, the company has faced a number of controversies mainly around its workplace practices.
Shein had previously promised to improve workplace conditions for its employees but a recent report by advocacy group the Public Eye found some staff continue to work 75 hour weeks.
A Shein spokesperson said; “While we do not recognise many of the allegations in this report, the discussion on working hours and wages raised by Public Eye is important to us, and we have made significant progress on enhancing conditions across our ecosystem.
“The Public Eye Report is based on a sample of 13 interviewees and, though all voices in our supply chain are important, this small sample size should be seen in the context of our comprehensive ongoing process to continually improve our supply chain, which involves engaging with thousands of suppliers and workers within the supply chain.”
They added: “Shein is investing tens of millions of dollars in strengthening governance and compliance across our supply chain, as well as empowering our suppliers to build more successful and responsible businesses, and we will continue to make substantial investments in these areas. “
“These efforts are already delivering results, with our regular supplier audits showing a consistent improvement in performance and compliance by our supplier partners.”
