London – Shein, the global fast-fashion retailer founded in China and now headquartered in Singapore, has received approval from the UK Financial Conduct Authority (FCA) for its planned initial public offering (IPO) in London.
The FCA’s green light represents a significant milestone in Shein’s journey toward listing its shares on the London Stock Exchange, following its confidential submission to the British regulator last June.
Although Shein relocated its headquarters to Singapore in 2022, it continues to be subject to Chinese rules governing the overseas listing of companies, and will require further approvals from Chinese regulatory bodies, including the China Securities Regulatory Commission (CSRC).
This additional regulatory hurdle comes at a time when global trade is experiencing uncertainty—exacerbated by rising tariffs on Chinese goods imposed by the U.S. administration, which have already disrupted IPO plans of companies like Swedish fintech firm Klarna.
Shein, which is known for selling ultra-low-cost items such as $10 dresses and $12 jeans in over 150 countries, was last valued at $66 billion in its 2023 fundraising round. Its extensive supply chain involves thousands of factories, primarily in China, with the company sourcing from around 5,800 third-party contract manufacturers.
As part of the listing process, Shein has informed the CSRC of the FCA’s approval; however, it is still awaiting the final nod from the regulator.
The upcoming IPO will be subject to Beijing’s new listing rules for Chinese companies going public offshore—a framework based on a “substance over form” principle that gives Chinese regulators discretion over timing and implementation. In recent weeks, changes in U.S. duty exemptions for shipments from China have added additional challenges that could potentially delay the fast-fashion giant’s IPO timeline, possibly pushing it into the second half of the year.
Shein’s eventual IPO valuation will depend on how these factors impact its business, with some reports suggesting its valuation might be revised downward to around $50 billion.
Despite these regulatory and trade headwinds, Shein has maintained its zero-tolerance stance on forced labour and child labour throughout its supply chain and remains focused on adapting to the changing global trade environment.
