Jeremy Hunt has held talks with Shein in an attempt to persuade the Chinese-founded fast fashion giant to commit to what could be one of London’s biggest corporate stock market flotations.
The online retailer, which was founded in China but is now headquartered in Singapore, is said to be considering switching its initial public offering from New York to London amid fears that US authorities would not approve its market debut, according to Bloomberg.
London is reportedly the likely frontrunner among a list of possible alternative stock markets including Hong Kong and Singapore.
The chancellor held talks with Donald Tang, Shein’s executive chairman, this month as part of efforts by British regulators and government officials to persuade it to choose the UK for a listing, Sky News said.
Shein, founded by the Chinese entrepreneur Chris Xu, burst on to the British fashion scene in 2020 when lockdowns forced shops to shut during the pandemic. It exports fast fashion — its T-shirts and dresses cost as little as £2 — direct to shoppers from China, which does not levy export duty on firms dispatching to the West. Shein has said its success was down to fashionable products and a flexible supply chain rather than tax exemptions.
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An IPO in Britain would provide a much-needed boost to the London stock market. Just 23 companies listing on the stock exchange last year, a 49 per cent decline on 2022, according to EY, the auditing firm.
Shein is said to be seeking a valuation of as much as $90 billion, which would push it into the top ten largest companies on the FTSE 100. It would also make it the biggest fashion retailer on the index by market cap.
The company has come under fire in recent years over a lack of transparency regarding its supply chain, alleged worker exploitation and for copying the fashion designs of independent designers. It is understood to have been exploring a listing since 2019.
Shein and The Treasury were contacted for comment.
