Shein eyes London for its IPO

In Short: Fashion giant Shein is leaning towards a London IPO because of the ongoing geopolitical soap opera between the US and China.

What's Going On?

Shein, the mega-popular online fashion retailer, was all set to go public in the US. But thanks to some serious drama over its ties to China, those plans hit a major snag. Even though Shein has been working hard to prove it's not under Beijing’s thumb, US lawmakers aren’t buying it.

Six months ago, Shein sent the SEC its “hey, we want to go public” paperwork, but things have been at a standstill. Now, it looks like Shein is shifting gears towards a London Stock Exchange (LSE) listing instead. Executive Chair Donald Tang hinted at this change of plans but made it clear that nothing's set in stone yet. They’re keeping their options open.

What Does This Mean?

For Shein, eyeing a London listing is like taking a scenic detour to avoid the traffic jam of US-China tensions. If they pull it off, it would be a big win for the LSE, which has been losing some of its shine to the flashier, more liquid US markets like NYSE and Nasdaq. London’s had a rough go lately, with big names like Arm Holdings and Flutter Entertainment jumping ship for New York.

Shein’s founder, Sky Xu, is itching to get the IPO show on the road, especially since China’s regulatory green light for a US listing is taking forever. Meanwhile, the UK has been rolling out the red carpet, with high-level chats including Chancellor Jeremy Hunt, making London look pretty attractive.

Even if London gives them the thumbs up, there’s still a question mark. The China Securities Regulatory Commission (CSRC) hasn't given a clear signal if they'll approve a UK float either. And let’s not forget, Shein might still want to double dip with a secondary listing in New York later.

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