From Morningstar: 2024-05-16 07:16:00

Shein, the Chinese fast fashion giant, may list on the London Stock Exchange after US-China tensions caused a NYSE float to falter. The company could be valued at $60 billion plus, challenging London’s ethics and ESG standards. Shein has big ambition but faces scrutiny over labour practices, tariff avoidance, and IP theft.

The potential Shein IPO would be significant for the LSE, aiming to boost its global standing against US counterparts. Large IPOs by Arm Holdings, Flutter, and Darktrace have favored the US market, pushing London to refocus on attracting big listings. Shein’s valuation could surpass $50 billion, bringing a new economy stock to the FTSE 100.

Shein’s leadership is taking a reserved approach to their IPO amid geopolitical tensions. Larger Chinese companies are listing outside China due to uncertainty. Shein is avoiding scrutiny by not seeking publicity and keeping a low profile. Despite US-China tensions, Shein’s listing is unlikely to be affected by recent tariffs, with a 98% chance of IPO success according to PitchBook’s valuation.



Read more at Morningstar: Shein’s Potential London IPO – Why You Should Care