Fast fashion giant Shein is reportedly considering selling its shares directly to the British public as part of a potential £52bn listing on the London Stock Exchange.
The company’s bankers, including JP Morgan, Goldman Sachs and Morgan Stanley, are pushing for plans to sell to retail investors along with institutional investors, according to The Telegraph. Plans are at an early stage and no decision has been taken yet, the report said.
Individual investors are usually only able to buy shares on the open market once trading begins, after banks, funds and asset managers have already had their fill.
While the Chinese-founded retailer was originally thought to opt for an initial public offering (IPO) in New York, those plans may have been shelved amid concerns from US lawmakers and regulators.
Instead, the company appears to have turned its eyes to the London Stock Exchange. It reportedly filed papers in June with the Financial Conduct Authority (FCA) to proceed with the listing.
Valued at $66bn (£50bn) following a funding round in May 2023, Shein’s London listing would become the largest in the city’s history, surpassing the £36bn debut of commodities giant Glencore in 2011.
While a London listing would be a boon for the IPO-starved exchange, some are concerned that a plethora of ethical issues at the firm mean it shouldn’t be welcomed to the bourse.
The company has been heavily criticised for failing to stamp out poor working conditions in its supply chains – a claim it denies.
Founded in China, Shein moved its headquarters to Singapore in 2021. The brand’s popularity boomed during the pandemic and its low prices continue to draw in customers.
Shein and JP Morgan declined to comment. Morgan Stanley and Goldman Sachs did not immediately reply to a request for comment.