BRIEF: Shein abandons London listing plan, heads to Hong Kong
Online fast fashion retailer Shein has abandoned plans for a London IPO after failing to get approval from China’s securities regulator, Reuters reported on Wednesday, citing sources familiar with the matter. The company now aims to list in Hong Kong instead, with plans to file a draft prospectus with the Hong Kong Stock Exchange in the coming weeks, the report added.
Shein originally aimed to list in New York but gave up after meeting with resistance from U.S. politicians. It later shifted to London, where it overcame similar resistance and was moving ahead after the British Financial Conduct Authority, the country’s financial regulator, approved the deal last month.
Approval from China’s securities regulator was believed to be the last major regulatory approval the company faced. But the CSRC failed to give its approval, according to the Reuters report, which didn’t cite a reason. Shein was founded in China and later moved its headquarters to Singapore. But it still has major operations in China, and also sources a majority of its clothing from manufacturers in the country, which may have been why it sought the CSRC’s approval.
The company was valued at $66 billion after a funding round in 2023. It may have lost some value since then due to competition and growing barriers to its business in Western countries that are its most important markets. Even so, its planned listing is likely to raise several billion dollars.
By Doug Young
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