Shein Pushes to Launch IPO in London FTSE 100 in 2024

Chinese fast-fashion giant Shein is gearing up for a £53 billion (MX$1.11 trillion) float on the London Stock Exchange, a move expected to boost the index. Reportedly, Shein has opted for London as its listing venue following challenges with both Chinese and American regulators, as previously reported by MBN. The company aims to inform China’s securities regulator about its shift from New York to London and is preparing to file with the London Stock Exchange within this month. The company aims to complete the process by the end of the year. 

Notably, leading financial institutions including JP Morgan, Goldman Sachs, and Morgan Stanley are actively involved in orchestrating the high-profile IPO. In April, Shein reported a significant surge in profits, exceeding US$2 billion, with sales totaling around US$45 billion in the previous year, according to sources cited by the Financial Times. 

The move to list in London is poised to inject vitality to the city's financial landscape, particularly amid concerns regarding its competitiveness compared to other global exchanges like New York and Amsterdam. Shein's decision aligns with a broader trend of companies seeking listings outside the United States, drawn by regulatory uncertainties and geopolitical tensions.

Shein's anticipated IPO in London is expected to bolster the FTSE 100 index, comprising the most highly capitalized blue-chip companies on the London Stock Exchange. With a valuation exceeding £60 billion, Shein is set to join the ranks of the top-listed firms in London upon the successful completion of its public offering.

Despite the excitement surrounding Shein's listing, the company's public debut is likely to spark controversy due to longstanding allegations of labor abuses at some of its factories, associated with human rights violations in China. Nonetheless, Shein's proactive engagement with UK politicians and officials signals its commitment to addressing concerns and navigating potential challenges in its journey to the public market.