Online fashion retailer Shein has confidentially submitted paperwork for an initial public offering (IPO) on the London Stock Exchange, according to reports from multiple financial news outlets in early June. The move follows the company’s previously reported attempt to list in the United States, which encountered scrutiny from lawmakers and regulators.
The potential valuation for the London listing could reach approximately £50 billion ($64 billion), sources familiar with the matter told the Financial Times and Bloomberg. Shein has not publicly confirmed the valuation or the filing.
Shein, founded in China and now headquartered in Singapore, has experienced rapid growth to become one of the world’s largest fashion retailers. The company reported over $2 billion in profit for the 2023 fiscal year on gross merchandise value of approximately $45 billion, according to the Financial Times.
The decision to pursue a London IPO comes after Shein’s confidential filing with the U.S. Securities and Exchange Commission in November 2023. That filing faced significant political and regulatory examination in Washington. U.S. lawmakers from both parties raised concerns about the company’s supply chain, labor practices, and use of a U.S. trade exemption.
A central point of scrutiny has been Shein’s supply chain transparency, particularly concerning allegations of its connection to cotton sourced from China’s Xinjiang region. A 2023 report from a U.S. congressional committee raised questions about the company’s potential links to forced labor, which Shein has consistently denied.
In public statements, Shein has maintained it has a zero-tolerance policy for forced labor and requires its contract manufacturers to adhere to a code of conduct based on International Labor Organization conventions.
Additionally, legislators have examined Shein’s use of the “de minimis” rule, a U.S. tariff exemption for packages valued under $800. This provision allows the company to ship products directly to U.S. consumers from overseas without incurring import duties, a practice critics argue gives it an unfair advantage over domestic retailers.
The company’s planned listing has also prompted reactions in the United Kingdom. Members of Parliament and human rights organizations have called on British regulators to conduct a thorough review of Shein’s business practices and supply chain before granting approval for the IPO.
If the listing proceeds, it would be one of the largest IPOs in London’s history. The final decision rests with the U.K.’s Financial Conduct Authority, which will review the company’s application.
