Chinese fast-fashion giant Shein, infamous for its meteoric rise during the COVID-19 pandemic and equally notorious for its environmental and labor practices, is reportedly setting its sights on a £50 billion IPO on the London Stock Exchange. The move comes after facing regulatory hurdles and scrutiny in the US market.
Shein's success is built on a model of rapidly producing vast quantities of cheap clothing, fuelled by social media influencer marketing. However, the company has faced intense criticism for its environmental impact and allegations of forced labour within its supply chain.
The potential London listing could be a major boon for the City, which has seen a number of companies opt for US listings recently. The UK government has been actively working to make the country a more attractive destination for IPOs.
However, the move is not without controversy. Shein has faced allegations of using forced Uyghur labor and reports of excessive overtime at its supplier factories. Despite the company's claims of addressing these issues, concerns about its business practices persist.
Colleen McHugh, chief investment officer at Wealthify, acknowledged the potential benefits of a Shein listing for the London stock market but cautioned that it would not be without controversy. Ultimately, the decision of whether to allow the IPO will rest with the Financial Conduct Authority (FCA), the UK's financial regulator.
Shein's executive chairman, Donald Tang, has been actively engaging with UK officials, including Chancellor Jeremy Hunt and shadow business secretary Jonathan Reynolds, to discuss the possibility of a London listing.
