Shein files for London IPO after failing to secure support for U.S. IPO

From CNBC: 2024-06-24 09:26:06

Shein, a fast fashion giant with Chinese ties, has confidentially filed for a public listing in London after failing to win support for a U.S. IPO due to concerns about forced labor in its supply chain and use of tax exemptions. Beijing’s approval for the London listing remains uncertain.

Despite moving its headquarters to Singapore, Shein remains predominantly reliant on its Chinese supply chain. Its attempt to win over U.S. lawmakers and industry stakeholders, including applying for membership with the NRF, has not been successful due to geopolitical concerns and criticism over the origins of its raw materials.

Caught in the crossfire between the U.S. and Beijing, Shein faces increased scrutiny over alleged imports from banned regions containing forced labor. While raw materials from such regions have been found in its supply chain, the company has performed better than industry averages in eliminating them from its products.

Shein opted for a London listing after the SEC requested it to make its filing public, a move the company attributed to its commitment to transparency rather than fundraising. Despite its twists and turns, Shein’s journey to the public markets continues, balancing speed, ambition, and geopolitical tensions in pursuit of its global expansion.



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