Shein set to launch US$64 billion London IPO prospectus, expand resale service

Reuters

4th Jun 2024

Online fashion firm Shein is preparing to file a prospectus with Britain’s Financial Conduct Authority for approval ahead of a potential London float which could value it around US$63.70 billion, Sky News reported on Sunday.

The confidential filing could take place as soon as the coming week, the report added, citing sources.

Chinese-founded Shein did not immediately respond to a Reuters request for comment.

Shein, valued at $66 billion in a fundraising last year, started engaging with the London-based teams of its financial and legal advisors to explore a listing on the London Stock Exchange early this year, sources told Reuters in May.

The fast-fashion company stepped up preparations for its London listing after its attempt to float itself in New York faced regulatory hurdles and pushback from US lawmakers.

However, senior British lawmakers are also questioning Shein’s suitability for a London listing and calling for greater scrutiny of the business. Shein, in response, has said it is strengthening governance and compliance.

Resale service to be expanded

Meanwhile, Shein says it will expand its resale platform – where customers can buy and sell previously pre-owned products from the fast fashion retailer online – into Europe and the UK.

The platform, which was launched in the US about two years ago, will now be accessible in France, followed by the UK and Germany in subsequent phases.

The company said the latest launch of the Shein Exchange platform comes after studies revealed that 50 per cent of respondents from the UK, France, Germany, and Brazil are driven by sustainability to buy second-hand clothes online.

Last year, more than 4.2 million new users signed onto the exchange platform in US, with over 115,000 pre-owned items listed for sale by over 95,000 sellers, the company added.

• Reporting by Akanksha Khushi in Bengaluru and Radhika Anilkumar; Editing by Ros Russell and Shailesh Kuber, of Reuters.