Chinese online retail star Shein may decide that a New York listing is not the best option and consider listing on the London Stock Exchange.
The e-commerce group has concluded that its US application is unlikely to be accepted by the SEC and is considering the LSE for an IPO, Bloomberg reported.
London is now considered a top candidate, along with Hong Kong and Singapore, and the Chinese company is said to have held talks with LSE executives late last year.
It is said that preparations are currently in the early stages for the float to be held in London.
Danny Hewson, analyst at AJ Bell, said: “Taking ownership of one of the most disruptive stocks in the UK retail market is certain to help repair the damaged reputation of the London Stock Exchange as a listing venue. It will have an amazing effect.”
“Investor interest is likely to be huge, with a patchwork effect where more and more big stocks look to the US as a primary stock location, with others listing in the UK. That would be a good sign.”
“Shane wants to be seen as a global company, and listing its shares in the West rather than in China will reposition the company in the eyes of investors. It will mean greater transparency and higher levels of corporate governance.”
As relations between the U.S. and China continue to deteriorate, avoiding potential geopolitical conflicts associated with a U.S. listing, as well as streamlining the London Stock Exchange listing system proposed in December, could be a factor. There is sex. The UK is more attractive to businesses.
Mr Hewson said Shane would face a number of headwinds if it chose to list in the UK.
“The listing will shine a spotlight on the company’s supply chain and the ethical and environmental issues surrounding fast fashion in general. The clothing retailer will certify that it does not use forced labor in the production of its products. “The company is under pressure from lawmakers to do so. It has also been accused of copyright infringement, which poses another risk for investors.”
These issues aren’t important to all investors, she said, and some simply see Shayne as another opportunity to buy stock in a fast-growing name in the retail industry.
London listing rules
Britain tweaked its listing rules in 2021 to help attract high-tech companies as part of broader reforms to keep London a globally competitive financial center after leaving the European Union.
Then there was the mass death of float stocks over the past two years, and the final quarter of last year was the worst since early 2009, with not a single IPO completed in the fourth quarter (Aquis Transfer 1 (excluding one case and one reverse takeover case). , further changes to the listing rules have been proposed.
Under new streamlining measures from the Financial Conduct Authority, there will be no distinction between London’s premium and standard listed segments, and there will be no requirement for shareholder approval for some large or related-party transactions.
So far in 2024, there has been one major flotation of Air Astana, which started trading earlier this month.