(Bloomberg) – Fast fashion company Shein is considering the possibility of moving its initial public offering from New York to London because of hurdles to listing in the U.S., according to people familiar with the matter.
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Shine, which was founded in China and is currently headquartered in Singapore, is in the early stages of exploring options in London after determining that the U.S. Securities and Exchange Commission is unlikely to approve its IPO, people familiar with the matter said. and asked that it not be approved. It has been determined that confidential information is being discussed.
Shane is still working on an application to list the U.S. as a priority location, the people said. It added that if it wanted to change to another location, such as London, it would need to submit a new overseas listing application to Chinese regulators. Other venues, including Hong Kong and Singapore, may also be considered, two of the people said.
A representative for Mr. Schein declined to comment.
Read more: Shein backers offer 30% discount as IPO prospects darken
After the worst year for IPOs in modern history, a London listing would be a potential boon for a struggling market. IPOs in the UK raised just about $1 billion last year, the lowest level in decades, according to data compiled by Bloomberg.
Britain is also struggling to stem the flow of companies to countries such as the United States. Chip designer Arm Holdings Ltd. blocked a New York IPO in London last year, despite efforts by the British government to allow the Cambridge, England-based company to list domestically. Already listed companies are moving overseas, and TUI AG’s shareholders voted earlier this month to delist the company from the London Stock Exchange and move its trading primarily to Germany.
small and rare
There have been few initial public offerings (IPOs) by Chinese companies in the U.S. in recent years, since Didi Global was ousted from its board of directors in New York as part of a crackdown that effectively shut down the market for first-time stock sales by Chinese companies. were small and rare. Amer Sports’ $1.6 billion initial public offering in February was the largest Chinese-backed IPO to tap the U.S. market since Didi Chuxing raised $4.4 billion in 2021. At the time, it was the first time that a company had raised more than $200 million.
Read more: China’s biggest US IPO after Didi Chuxing falls below range
Shane has come under intense scrutiny from the United States, with Sen. Marco Rubio asking the SEC to block the company’s listing, saying it would need to disclose more about its operations in China. Last year, members of the US Congress called for an investigation into the supply of Shein cotton from Xinjiang. US-China trade tensions have also been smoldering for many years.
Shayne, a pioneer of ultra-fast fashion that sells shirts and swimsuits for as little as $2, filed for an IPO in the U.S. last year with a valuation of $80 billion to $90 billion, people familiar with the matter said at the time. revealed. In private transactions in late 2023, the company’s valuation was even lower, at about $50 billion.
Read more: China’s scrutiny of Shein IPO plans signals expanding scope of regulators
–With assistance from Daniela Way.
(Updates with UK and US listings from 5th paragraph onwards.)
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