Shein Secures Approval from City Watchdog for London IPO

Fast fashion retailer Shein has gained preliminary approval from the City regulator to launch its initial public offering (IPO) on the London Stock Exchange. 

Last year, there were reports that the retailer was preparing to list in London with a valuation of approximately $50 billion. Last month, the company confirmed its intention to proceed with the flotation. Originally established in 2012 in China, Shein has since relocated its headquarters to Singapore.

According to Reuters, the Financial Conduct Authority (FCA) has recently approved Shein’s IPO prospectus. This approval represents a significant step toward the retailer’s listing, although it still requires clearance from Chinese regulatory authorities.

This development comes as Shein’s recent financial results revealed a nearly 40% drop in net profit for 2024, with earnings amounting to $1 billion—far below its earlier target of $4.8 billion. The prospect of Shein’s listing has sparked debate, as the retailer contends with scrutiny regarding its environmental practices and labor conditions. Earlier this year, Members of Parliament and media reports criticised Shein’s lack of transparency regarding its supply chain.

A human rights organisation has warned the FCA that it may pursue legal action if the regulator approves Shein’s IPO in light of concerns about the company’s supply chain practices. Additionally, the recent 125% tariff imposed by the Trump administration on Chinese imports has raised further questions about Shein’s upcoming float. Bloomberg reported this week that China’s Ministry of Commerce has advised the retail giant not to change its sourcing strategies and to avoid diversifying supply chains by looking to other countries.

Shein, which mainly manufactures and exports clothing from China, remains highly susceptible to the ongoing tariff tensions between the U.S. and Beijing.

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