London bankers have waited more than two years for initial public offerings (IPOs) to bounce back. When news of fast-fashion upstart Shein’s potential listing first emerged at a potential £50 billion (US$64 billion or RM301 billion) valuation, the city saw a deal that could finally reverse the slump.
It won’t be easy. To deliver what could be one of the UK’s biggest-ever IPOs, the controversial e-commerce retailer will need to convince regulators, politicians, and investors that it meets their standards for inclusion. Despite facing allegations of environmental, social, and governance (ESG) issues, including concerns over forced labor, Shein has expressed a zero-tolerance policy for such practices.
Facing scrutiny from lawmakers in the US, Shein has shifted its listing plans to the UK, signaling a potentially groundbreaking move. While critics warn of potential risks, some key decision-makers, including the Labour Party, have shown support for the listing. However, with various political factions and regulatory bodies involved, Shein’s path to a blockbuster IPO is paved with challenges.
As the London Stock Exchange grapples with its deepest IPO slump in over a decade, the potential listing of Shein could inject much-needed momentum into the market. Despite facing allegations and political pressure, the e-commerce giant remains committed to meeting the UK’s listing standards. With high stakes and complexities involved, the path to a Shein IPO in London remains a tough course to navigate.
