Shein files for IPO on London Stock Exchange

Shein, the rapidly growing fast fashion e-commerce platform, is reportedly preparing for a significant Initial Public Offering (IPO) on the London Stock Exchange. This could potentially be the second-largest IPO in London's history.

Transaction Snapshot:

  • Deal value: Estimated market capitalisation of around £50 billion, raising over £1 billion.
  • Deal multiples: N/A
  • Deal type: Initial Public Offering (IPO)
  • Investors: N/A

Shein had confidentially filed its prospectus with UK regulators. The listing could happen as soon as this summer or early autumn. The fast fashion giant was valued at $66 billion in its latest funding round, though this figure may be outdated.

Analysts suggest Shein could target a share price similar to H&M, currently trading around $17 per share. However, IPO pricing is complex, and volatility is common as the market discovers the appropriate valuation.

Shein's business model revolves around rapidly producing low-cost, trendy clothing by leveraging data analysis, a vast supplier network in China, and aggressive social media marketing. It operates in over 150 countries with 150 million customers.

The company faces criticism regarding sustainability, labour practices, and potential use of Xinjiang cotton linked to human rights abuses. Corporate governance concerns include alleged copyright infringement.

A successful Shein IPO would be a major boost for London's equity markets, which have suffered from a lack of major listings and companies departing for higher valuations elsewhere. Securing this deal could reinvigorate London's status as a global financial hub.

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