"Shein, the fast-fashion giant famous for $2 T-shirts, is exploring a London IPO after New York was too tough, sources say", February 27 2024

Fast-fashion company Shein is considering the possibility of switching its initial public offering to London from New York because of hurdles to the listing in the US, according to people with knowledge of the matter.

Shein, which was founded in China but is now headquartered in Singapore, is in the early stages of exploring the London option as it has judged it unlikely that the US Securities and Exchange Commission will approve its IPO, the people said, asking not to be identified discussing confidential information. 

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A representative for Shein declined to comment.

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“Listing on the LSE is a short-term compromise taken by Shein to prioritize certainty over valuation and liquidity,” said Ke Yan, head of research at DZT Research in Singapore...

US IPOs by Chinese companies have mostly been small and rare in the years since Didi Global Inc. was forced off the boards in New York, part of a crackdown that essentially closed the market to first-time share sales by Chinese firms ...

Shein has been subject to scrutiny from the US, with Senator Marco Rubio among those asking the SEC to block its listing, saying the company needs to disclose more about its operations in China. Last year, a member of US Congress asked for a probe into Shein’s cotton supply from Xinjiang. US-China trade tensions have also been simmering for years.

“Firms closely linked to China will find it more challenging to comply with US requirements regarding transparency and how to satisfy Chinese regulators simultaneously,” said Gary Ng, a senior economist for Natixis in Hong Kong. “There will be more trials to find alternatives, and the Shein case can serve as a case to test water,” he said ...

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