Shein has taken a step towards embarking on its much-anticipated float on the London Stock Exchange, which is expected to value the fast-fashion giant at around £50bn.
The Singapore-headquartered retailer is reportedly preparing to submit a prospectus to the Financial Conduct Authority ahead of the rumoured IPO.
Sky News reports that the filing could take place as early as this week, although it could also come later in June.
The milestone in the listing process is a key signal of the retailer’s intent to become one of the most prominent public listings in London for over a decade.
The timing of the filing may not align with the exact schedule for the float, but reports suggest Shein’s London debut could come this summer or in early autumn.
Shein had initially targeted a New York listing but was met with regulatory hurdles in the US and China.
It is reported that the China Securities Regulatory Commission (CSRC) informed Shein that it “would not recommend” a US IPO due to Shein’s “supply chain issues”.
If Shein updates the Chinese regulator on the London IPO, it would be subject to Beijing’s approval under the new listing rules for Chinese firms going public offshore.
As Shein does not own or operate any manufacturing facilities and instead uses more than 5,400 third-party contract manufacturers, mainly in China, that makes it subject to the CSRC listing rules.
Under new rules, other Chinese authorities, including the National Development and Reform Commission, which supervises foreign holdings in local firms and the cybersecurity regulator, may have to support in approving offshore IPO applications.
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