In a recent turn of events, Shein, the fast fashion giant with ties to China, has confidentially filed for a public listing in London. This move comes after facing backlash in the U.S., where it failed to secure the support of American lawmakers for an initial public offering.
Shein had initially filed for a U.S. IPO in November but shifted its focus to London due to concerns raised by elected officials in the U.S. about the use of forced labor in its supply chain and its utilization of a U.S. tax law exemption known as de minimis. Despite its filing in London, Shein still prefers to go public in the U.S., and the outcome of the London listing remains uncertain as it awaits approval from Beijing.
The company, which was founded in China, has been striving to position itself as a global entity by relocating its headquarters to Singapore in 2021. However, the majority of its supply chain remains in China, raising concerns about potential regulatory control by Chinese authorities over its operations and data.
Shein’s journey to a public markets debut has been tumultuous, marked by controversies and geopolitical tensions between the U.S. and China. As it continues to expand its presence in the U.S., Shein has faced challenges in winning over lawmakers and industry associations. The company’s efforts to join the National Retail Federation have been unsuccessful, reflecting the obstacles it faces in gaining acceptance in the U.S. market.
In response to scrutiny from U.S. lawmakers and regulators, Shein has acknowledged the presence of raw materials from banned regions in its supply chain but maintains that it has taken steps to address the issue. Despite facing pressure to disclose sensitive information for its listing, Shein’s executive chairman emphasizes that the company’s decision to go public is driven by a commitment to transparency rather than a need for capital.
Stay tuned to Extreme Investor Network for more updates on Shein’s path to a public listing and the evolving dynamics of the fast fashion industry. Subscribe to our newsletter to receive exclusive insights and analysis on the latest developments in the business world.