Shein to File £50 Billion Contentious London IPO Amid Regulatory Scrutiny

Jun 2, 2024, 07:03 PM

Online fashion giant Shein is set to file a prospectus for a £50 billion initial public offering (IPO) in London, marking one of the most significant and contentious deals in the UK's capital markets in years. The company, valued at $66 billion in its last fundraising, has faced backlash from politicians and fund managers in the UK. Shein, founded in 2012 in China, has never sold products in its home country and has been caught in US-China tensions, which have hampered its hopes for a New York IPO. The company has also faced scrutiny over allegations of using harmful chemicals, including lead, in its products, with South Korea alleging that seven out of eight children's leather goods contained harmful substances. Shein's clothes have also been criticized for containing poisonous chemicals. Despite these challenges, Shein's London IPO could be one of the biggest in years if it navigates regulatory hurdles successfully. Shein will file a confidential prospectus with the City watchdog this month.