Shein's Estimated £60 Billion Valuation to Boost London FTSE 100

Shein is expected to boost the FTSE 100, an index comprising 100 of the most highly capitalized blue-chip companies listed on the London Stock Exchange, with anticipation mounting for the Chinese fast fashion retailer’s imminent announcement of going public in London, potentially as early as next month. With an estimated valuation exceeding £60 billion (MX$1.2 trillion), Shein would immediately ascend to the ranks of the top-listed firms in London upon the successful completion of its public offering. 

The decision to pursue a significant share offering in London has garnered support from Jeremy Hunt, Chancellor, United Kingdom and Johnny Reynolds, Shadow Business Secretary, Labour Party, following a recent visit to the United Kingdom by Donald Tang, Chairman, Shein.  

Initially considering an initial public offering (IPO) in New York, where online firms often command higher stock market valuations, Shein redirected its focus to London due to a deteriorating political climate for Chinese companies in the United States. 

The increasingly contentious environment for Chinese companies in the United States came into focus when the US Congress approved a bill mandating ByteDance, the Beijing-based owner of TikTok, to divest its US operations over national security concerns—a move President Biden is expected to support.

Headquartered in Singapore, Shein primarily manufactures its products in China and utilizes advanced technology to translate the latest fashion trends into new offerings. The company sources products from approximately 6,000 factories across China and has earned comparisons to the "Amazon of fashion" by Time magazine.

Despite the anticipated London listing, Shein's public debut is likely to spark controversy due to longstanding allegations of labor abuses at some of its factories and operations in regions of China associated with human rights violations. However, Tang reportedly found reassurance in discussions with UK politicians and made a deliberate effort to engage with Labour officials during his visit to Britain.