Fast fashion company Shein is reportedly considering floating its stock market in London rather than New York due to potential problems with listing in its preferred US location.
China-founded, Singapore-based Shein is in the early stages of exploring an initial public offering in London as it believes it is unlikely the U.S. Securities and Exchange Commission will approve an initial public offering. reported Bloomberg. report.
Despite the government’s push for more companies to list on New York’s Nasdaq, many companies have bypassed the London Stock Exchange and listed on New York’s Nasdaq, making the UK’s listing difficult as a global financial center. It has the potential to improve the country’s status.
Indivior, which makes opioid addiction treatment drugs, announced last week that it is consulting shareholders about plans to move its initial public offering to the United States this year. Earlier this month, Anglo-German travel company Tui announced it would delist its shares in London after shareholders overwhelmingly supported a standalone listing in Frankfurt. Tui Chief Financial Officer Mathias Kipp said liquidity has been moved from London to Frankfurt.
Arm, a Cambridge-based chip design company whose chips are in nearly every smartphone and is owned by Japan’s SoftBank, opted last year to list on New York’s Nasdaq along with other tech companies. But this was done in contempt of Rishi Sunak’s government, which the government was trying to plan. Convince the company to expand into London.
Around $1 billion (790 million pounds) was raised through IPOs in the UK last year, the lowest level in decades, according to data compiled by Bloomberg.
According to Bloomberg, Shane is still working on a U.S. listing application and would need to file a new overseas listing application with Chinese regulators if it decides to move elsewhere, such as London. Other possible listing locations include Hong Kong and Singapore.
In November, the company filed confidential documents with U.S. securities regulators announcing its intention to list in the United States.
The listing will be one of the largest IPOs in recent years.
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Shein is one of the world leaders in fast fashion e-commerce, leveraging a network of small-volume manufacturers in China and a large presence in online advertising. It was founded in Nanjing in 2008 by mysterious billionaire Xu Yangtian, also known as Chris Xu.
Mr. Shane has been contacted for comment.