Shein has confidentially filed papers for an initial public offering on the London Stock Exchange, according to reports.
While rumours have been swirling that the Chinese-founded fast fashion will opt for a London listing, it has now filed papers with the Financial Conduct Authority (FCA) to do so, sources told CNBC, Reuters and Bloomberg.
Shein’s original plan to list in New York seems to have been abandoned after facing a hostile response from lawmakers and regulators in the US.
The company was valued at $66bn (£52bn) at a fundraising round last year.
Shein has also officially notified China’s securities regulator about its change of listing venue, sources told Reuters, although it has not received approval from the China Securities Regulatory Commission.
The FCA would normally take around two months to make a decision on the paperwork that Shein has apparently submitted. If it and the Chinese authorities approved it, Shein would then be able to publicly file an intention to float on the British bourse.
The fast fashion retailer has come under criticism for accusations of its workers allegedly toiling for long hours in grim conditions.
“There have been lingering concerns in the City over Shein’s supply chain, with many institutional investors, politicians and industry bodies worried about working conditions for the people who ultimately make its products, as well as other questions about its business practices,” said Russ Mould, investment director at AJ Bell.
Founded in China, the company then moved its headquarters to Singapore in 2021. The brand skyrocketed in popularity during the pandemic, and its cheap prices have continued to attract cash strapped consumers during the cost of living crisis.
“Attracting a major business name like Shein would help to put the spotlight on the London Stock Exchange and potentially encourage other companies to list in the UK and help to revitalise the market,” added Mould.
“Equally, such a listing could also backfire if it turns out that certain parties were right to be sceptical about Shein.”
Shein and the London Stock Exchange have been contacted for comment.