Fast fashion site Shein seeks London listing

A spokesperson for Shein declined to comment. The Financial Conduct Authority (FCA), the UK markets watchdog, did not immediately respond to Reuters’ request for comment. Both the sources, who have knowledge of the deal, declined to be named as they were not authorised to speak to the media.

It is not immediately clear when Shein, known for its $5 tops and $10 dresses, plans to launch the IPO.

Shein has updated China’s securities regulator officially about its change of listing venue, said the sources.

However, the company has yet to receive a nod from the China Securities Regulatory Commission (CSRC) which would allow the listing to go forward, one of the sources said.

The CSRC did not immediately respond to a Reuters request for comment.

Shein’s London filing marks a shift from its long-running US IPO plan, which has run into obstacles at home and abroad, Reuters has reported.

The group confidentially filed for an IPO with the US Securities and Exchange Commission in November and approached the CSRC to seek Beijing’s nod in the same month, sources have said.

The CSRC earlier this year informed Shein that the regulator would not recommend a US IPO due to the company’s supply chain issues.

As the company seeks to list in London, across the English Channel it is potentially facing more scrutiny.

New EU rules, coming into effect in August, will require Shein to prevent product listings that violate intellectual property rights and to prevent it from listing or selling counterfeits to its 108 million monthly active users in the region.

Shein said it is committed to complying with the EU’s Digital Services Act. The company did not specify any updates it has made to its operations since April, when the EU announced guidelines for Shein as a “very large online platform.” 

Reuters