Online fashion giant Shein to unveil prospectus for £50bn London float | Business News

Shein, the online fashion giant, is about to take a big step towards a London stock exchange that would value it at around £50 billion and be among the most significant – and controversial – deals in the world’s capital markets. UK for years.

Sky News can exclusively reveal that Shein, which was founded in China but is based in Singapore, is preparing to submit a prospectus to the Financial Conduct Authority for approval ahead of its potential launch.

City sources said Sunday night that the confidential filing could occur as early as next week, although it could still occur later this month.

The milestone in the listing process would be the clearest sign yet that Shein, which owns the British fashion brand Missguidedwill become London’s highest-profile public float in more than a decade.

The timing of the filing does not necessarily indicate when an initial public offering would occur, although some observers believe a summer or early fall stock market debut in London is still in the cards.

Shein initially targeted a New York listing but was beset by political opposition, resulting in a lukewarm reception from regulators.

By contrast, Sky News revealed earlier this year that Donald Tang, executive chairman of Shein, met Jeremy Hunt, the chancellor, earlier this year, along with other ministers and executives from the London Stock Exchange.

The meeting between Hunt and Tang highlighted the importance that British officials are placing on the idea of ​​outperforming the US in an effort to achieve Shein’s IPO.

It is also known that Tang also spoke to several leaders Work politicians, including Jonathan Reynolds, the shadow business secretary in recent months.

Filing a prospectus with the FCA does not guarantee that the company will be listed in London, with a final decision subject to meetings with fund managers and approval from UK listing authorities.

However, people close to the process said it represented a significant moment that meant a city float for Shein was now highly likely.

Shein has been at the center of controversy over its use of cotton from the Xinjiang region in China and other issues related to workers’ rights and its vast supply chain.

If it goes ahead with the London listing, Shein is expected to look to raise more than £1 billion by selling new shares to investors.

This would, however, be relatively modest in the context of an anticipated valuation of £50 billion or more.

The company was valued at $66 billion in its latest round of financing early last year.

Last month, Sky News revealed that Sajid Javid, the former Chancellor of the Exchequer, was approached about taking a role at Shein.

If discussions continue, they could see him join Shein’s board or become an advisor to the China-founded company.

Shein could be responsible for staging the second biggest IPO in the history of the London Stock Exchange, behind the 2011 stock market debut of Glencore International, the commodities trading and mining group.

Goldman Sachs, JP Morgan and Morgan Stanley are advising on the deal.

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Founded in China in 2012, Shein was valued at more than $100 billion in 2022, at which point it was worth more than H&M and Zara’s parent company, Inditex, combined.

It operates in more than 150 countries and has 150 million users worldwide.

The LSE’s efforts to woo Shein come during a challenging period for the city as a listing location for major multinationals, with UK-based chip designer ARM Holdings choosing to operate in New York rather than London.

Other companies, such as gambling operator Flutter Entertainment and tour operator TUI, have moved their listings away from London, citing higher valuations and more liquid markets.

In recent weeks, however, London has picked up potential IPOs for personal computer maker Raspberry Pi, giving the city a boost.

Last month, Mr Hunt organized a summit in Dorneywood with the presence of technology companies such as Raspberry Pi and Monzo, the digital bank valued at more than £4 billion, as part of efforts to encourage them to list in the UK.

Shein declined to comment Sunday night.