Shein Given U.K. Approval for London IPO
LONDON — Shein, one of the world’s largest fast-fashion retailers harnessing the power of Chinese manufacturing, has been granted preliminary approval from the U.K.’s Financial Conduct Authority for its planned initial public offering in London.
First reported by Reuters, citing sources familiar with the matter, the FCA’s approval marks a major step forward in the Singapore-based, China-founded company’s pursuit of a London listing, but it is still waiting for approvals from Chinese regulators, such as the China Securities Regulatory Commission.
Shein declined to comment Friday.
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As reported, Shein had originally tried to list on the New York Stock Exchange, but its bid was blocked by U.S. lawmakers in 2023. It later pivoted to London.
Shein has been heavily criticized by sustainability advocates who say its inexpensive clothing fuels over-consumption and adds to landfills of discarded garments. Seeking to improve its public image and shine a light on all the positive work it has been doing, Shein last July unveiled plans to pump 250 million euros into European fashion’s circular economy and back the sector’s budding entrepreneurs, artists and artisans.
While the approval would help Shein to gain credibility, the firm is facing a much bigger obstacle: the escalating trade war between the Trump administration and China.
In addition to slapping a whopping 145 percent tariff on imported goods from China, Trump last week signed an executive order ending de minimis for shipments from China and Hong Kong, effective May 2.
A bipartisan basis often referred to as a “loophole,” de minimis allows shipments bound for American businesses and consumers valued under $800 to enter the U.S. free of duty and taxes.
It forms the cornerstone of crossbroader businesses like Shein, Temu and Amazon, which ship goods from overseas directly to consumers.
How Shein navigates America’s de minimis termination will have a big impact on its IPO valuation, sources told Reuters.
Greg Zakowicz, senior e-commerce expert at email marketing firm Omnisend, said Shein’s FCA approval is a significant moment for the wider e-commerce landscape in the U.K.
“Our data consistently shows that Shein has been successful at winning over British consumers, with over two-fifths saying they have shopped with the e-commerce giant,” added Zakowicz.
According to data compiled by Omnisend, British shoppers are placing greater emphasis on value. Some 60 percent of U.K. consumers surveyed by Omnisend said they have shopped on Chinese marketplaces like Shein and Temu in the past year, despite only 4 percent saying they fully trust these platforms.
“Going public in London presents Shein with a timely opportunity to build credibility and demonstrate a commitment to transparency, particularly in light of ongoing concerns around supply chain ethics, sustainability, and the safety of shopping with Chinese marketplaces,” Zakowicz said.
