'Chinese Uniqlo' Shein Switching from US to UK... IPO Filing Imminent

Submission of Investment Prospectus as Early as This Week
Largest Deal Since Glencore in 2011

'China's Uniqlo' Shein is taking steps for an initial public offering (IPO) in the UK instead of the US.

On the 2nd (local time), foreign media including Sky News UK reported that Shein is preparing to submit a confidential prospectus to the UK Financial Conduct Authority (FCA) for its IPO.

[Image source=Reuters Yonhap News]

According to sources, the prospectus is expected to be submitted as early as this week.

Sky News stated, "Submitting a prospectus to the FCA does not guarantee a listing on the London Stock Exchange. The final decision must go through meetings with fund managers and approval from UK listing authorities," but added, "According to sources, this is a significant moment, and the likelihood of Shein listing on the London Stock Exchange is very high."

Some expect Shein to list on the London Stock Exchange between this summer and early autumn, but foreign media noted that it is difficult to estimate the IPO timing based solely on the document submission.

Shein is expected to raise about ?1 billion (approximately 1.76 trillion KRW) through the London listing. The estimated company valuation exceeds ?50 billion (about 88 trillion KRW). When Shein raised funds in May last year, it was valued at about $66 billion (approximately 91 trillion KRW). Sky News reported that if Shein lists in the UK, it will be the second-largest IPO in the history of the London Stock Exchange since Glencore's listing in 2011.

Shein originally planned to list on the New York Stock Exchange. It filed a confidential application for a New York listing last November. However, due to escalating US-China tensions and allegations of using cotton from China's Xinjiang region linked to forced labor, the listing faced difficulties. Consequently, Shein has been considering listing options including London, Hong Kong, and Singapore.

According to Sky News, Donald Tang, Chairman of Shein, met earlier this year with UK Chancellor of the Exchequer Jeremy Hunt and senior officials of the London Stock Exchange. Tang also engaged with key Labour Party politicians, including Jonathan Reynolds MP, Shadow Secretary of State for Business, Energy and Industrial Strategy.

Founded in 2012 in Nanjing, China, Shein established itself as a leading global fast fashion (SPA) brand by offering ultra-low-priced products such as $10 jeans. In 2021, it relocated its headquarters to Singapore.

This content was produced with the assistance of AI translation services.