SHEIN steps up London IPO preparations

According to reports, SHEIN plans to update the IPO venue change with the Chinese securities regulatory authorities and aims to submit an application to the London Stock Exchange as early as this month. Earlier this year, the China Securities Regulatory Commission advised SHEIN against an IPO in the United States due to the company's supply chain issues.

SHEIN relocated its headquarters from Nanjing, China, to Singapore in 2022, but still requires approval from the China Securities Regulatory Commission for its offshore listing. Additionally, SHEIN's planned IPO in London will require approval from Beijing, aligning with China's latest regulations regarding overseas listings of Chinese companies. However, SHEIN is more inclined towards New York as its listing venue and intends to maintain the validity of its SEC application pending a change in stance from US regulatory authorities. After the London IPO, SHEIN may pursue a secondary listing in New York when the political environment in the United States is more favorable. SHEIN's valuation in the private market has decreased from $66 billion after its financing in May last year to $45-55 billion.

For London, this could signify a turning point, as previously British companies such as Arm, a chip design company, opted for listings in New York to pursue deeper liquidity. So far, Europe has seen more than 30 IPOs, with only four in the UK. According to Mergermarket data, SHEIN's listing could mark the first time the London Stock Exchange enters the global top twenty outside of Europe.

Currently, SHEIN is expanding into other categories including skincare, household goods, toys, home furnishings, and electronics, with food and beverages being the only category SHEIN has not yet ventured into. This strategy is understood to be part of SHEIN's plan to build credibility and compete more effectively with Amazon, as well as preparing for its IPO.