- IPO still faces sign off from Beijing
- Original filing dates from June 2023
- Tariffs on Chinese goods a threat
The FCA (Financial Conduct Authority) has given the ‘green light’ for Chinese fast-fashion retailer Shein to list on the UK stock market, according to sources at Reuters.
However, sources said the company faced pressure from shareholders to slash its valuation from $50 billion to approximately $30 billion to ensure the IPO (initial public offering) goes ahead.
It is still not plain sailing for the Shein which faces a double whammy of President Trump’s hikes in trade tariffs and approval from the CSRC (China Securities Regulatory Commission) before the IPO can proceed.
CHINESE SIGN-OFF STILL NEEDED
Russ Mould, investment director at AJ Bell, commented: ‘Reports Chinese fast-fashion retailer Shein has FCA approval for a UK stock market listing should be an important step on the road to turning its IPO ambitions into reality.
‘London is crying out for new listings of scale and Shein getting its IPO off the ground and shares listed could help raise the profile of the UK market and potentially draw in more big names. The UK regulator’s apparent green light is undoubtedly significant, particularly considering some of the concerns which have been expressed around Shein’s corporate governance and the ethics of its supply chain.
‘However, the current market environment could render it moot and makes the targeted timetable of the first half of this year a big ask.
‘Getting its IPO away at all could prove as tricky thanks to the levels of global market volatility unleashed by the US administration’s trade policies. This is only exacerbated by the fact Washington continues to pursue a tit-for-tat trade war with Beijing.’
LEARN MORE ABOUT SHEIN
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Ian Conway) own shares in AJ Bell.
