Shein in Talks for London IPO

Fast-fashion retailer, Shein, is reportedly in talks to float on the London Stock Exchange after an attempt to do so in New York faced regulatory hurdles.

The move has led senior politicians, including three parliamentary committee chairs, to call for more scrutiny of Shein as it sets its sights on a London stock market listing.

It has faced allegations of labour malpractices, with tough scrutiny from the US Congress stalling the company’s efforts to list in New York.

Rishi Sunak’s government has appeared eager to woo Shein to London instead.

The company’s executive chair, Donald Tang, met Jeremy Hunt, the chancellor, in February.

But senior British politicians said a Shein listing should not be allowed to go ahead while parliament is dissolved for the general election and the initial public offering (IPO) should be subjected to greater scrutiny.

Alicia Kearns, the Tory chair of the Commons foreign affairs committee, has questioned that with Shein’s prices so low the London Stock Exchange needs to ask itself, whose suffering is subsiding those prices?”

Sarah Champion, the Labour chair of the international development select committee, also noted that transparency in supply chains is vital and something all governments should be demanding.

She says serious concerns have been raised about the use of modern slavery by Shein which needs investigating.

And, Liam Byrne, the Labour chair of the business select committee, says it is not ideal that Shein’s floating in London could get the green light without parliamentary scrutiny.

If the London IPO were to go ahead, it would be one of the City’s biggest ever corporate listings and a boost to its reputation as an international financial centre.