Shein Eyes UK IPO Over US Amid Regulatory Concerns

Shein, the global fast-fashion giant, has postponed its Initial Public Offering (IPO) due to regulatory issues with the New York Stock Exchange and Chinese regulations. This delay could result in the company being listed in the United Kingdom instead of the United States.

Speculation about Shein's IPO has been rampant since November, with the company eyeing a valuation between US$80 billion to US$90 billion. However, recent developments suggest a potential decrease in valuation from its previous high of US$66 billion in a May funding round.

The proposed listing in the UK, as reported by Bloomberg, follows concerns raised by US politicians regarding Shein's ties to China. Sen. Marco Rubio has called for closer scrutiny, arguing that Shein's collaboration with Chinese regulators raises doubts about the completeness and accuracy of its IPO filings. 

If Shein proceeds with a UK listing, it could set a record for the largest British IPO ever, with Bloomberg reporting that the company could raise over US$10.7 billion through public share sales. Despite this, Shein continues to face controversies, including legal challenges and environmental concerns. Reports from Public Eye and other entities have highlighted issues such as hazardous working conditions and low-quality production practices.

However, Shein remains at the forefront of the fast-fashion industry, with revenue of US$30 billion, with a user base of more than 75 million active shoppers globally.

Shein's expansion efforts extend to Latin America, with plans to establish a warehouse in Mexico and potentially construct a manufacturing facility in the country.