Shein gets the green light from City watchdog for London lPO
Fast fashion retailer Shein has received preliminary approval from the City watchdog to float on the London Stock Exchange.
Early last year, the retailer was reportedly poised to list in London for around $50bn, and last month the Chinese-founded business confirmed its plans to float.
Initially founded in 2012 in China, the retailer is now based in Singapore.
Reuters reported that the Financial Conduct Authority (FCA) has approved Shein’s initial public offering prospectus in recent weeks.
This move by the FCA will be the final approval if the retailer goes ahead with its listing; however, the company still needs approval from the Chinese regulators.
This comes as Shein’s recent financials showed its net profit fell by almost 40 per cent in 2024, generating $1bn in net profit last year, well below its earlier projection of $4.8bn.
However, the prospect of Shein’s listing has divided opinions, with the fast-fashion retailer facing scrutiny over its environmental impact and labour practices.
Earlier this year, the retailer was lambasted by MPs and accused of behaviour that “bordered on contempt” after a senior Shein lawyer repeatedly refused to answer questions over its supply chain practices.
A human rights group has threatened the FCA with legal action if it green-lights Shein’s plans to float over concerns about its supply chain practices.
The impact of Trump’s 125 per cent tariff on Chinese imported goods will also raise questions over Shein’s proposed float. This week, Bloomberg reported that China’s Ministry of Commerce had reached out to the retail giant suggesting that they did not diversify supply chains by sourcing from other countries.
Shein, which primarily manufacturers and exports clothes from China, is highly exposed to the current trade war between the US and Beijing.