It's likely that Shein is considering an IPO in London.
In its early stages, Shein, a popular Chinese fast-fashion retailer specializing in affordable clothing, had aims to debut in the bustling markets of New York City. However, the US's regulatory body proved less than welcoming due to the ongoing tensions between Beijing and Washington. As a result, Shein was forced to change its approach.
Shein, a household name in Chinese online shopping, is said to be considering a public debut in London, according to numerous media outlets. Reports indicate that the company will file for an IPO with the London Stock Exchange in the near future, possibly grossing up to 50 billion pounds (Approx. 60 billion euros), making it one of the greatest IPOs in the city in recent memory.
Initially, the company had chosen New York as their preferred venue. The US's securities regulator seemed disinterested in facilitating this plan, prompting them to turn their attention to England. This move would represent a major triumph for the LSE, as several other companies seeking IPOs have bypassed London as of late.
Shein, a company founded in China before establishing itself in Singapore, is facing mounting concerns over the use of forced labor in the production of their wholesale fashion items. They're also facing criticism for their practice of shipping directly from China to customers abroad, thus evading import taxes.
Consumer rights organizations call out Shein
Recently, consumer advocacy groups have been vocal about their dissatisfaction with Shein's alleged parasitic business practices. The German Consumer Center (VZBV) has shared that Shein has breached EU regulations multiple times and has received official reproaches. A VZBV spokesperson asserted that the platform enables unfair consumer practices, contravening the Digital Services Act of the EU, thereby employing manipulative online platform design.
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With London as its new prospective venue, Shein is planning to partake in initial public offerings, aiming to raise significant funds for its expansion in the European market. Despite facing criticism from consumer rights organizations over alleged parasitic business practices, Shein's potential IPO in the textile industry could still generate significant interest among investors.
