Chinese fashion brand Shein has been planning to move its initial public offering (IPO) from New York to London due to the geopolitical tensions between Washington and Beijing and alleged human rights abuses.
According to Bloomberg, the retailer, which has since been based in Singapore, confidentially filed to go public last year, seeking a valuation of $80 billion to $90 billion.
While Shein preferred to list in Nasdaq, it has considered doing so across the pond in London as it thought that the US Securities and Exchange Commission (SEC) would not approve its IPO, people with knowledge of the application told Bloomberg.
The company was also considering Hong Kong or Singapore as potential IPO locations.
Sky News additionally reported that British Chancellor Jeremy Hunt met Shein boss Donald Tang to discuss a potential IPO in London, saying that the discussions were "productive."
"We have developed reforms to boost the UK as a destination for IPOs, including making it easier for companies to list more quickly," Hunt said. "The government does not comment on individual companies - it is for individual firms to decide where to list."
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Shein's Corporate Skeleton Closet
The Bloomberg report added that Shein's $90 billion IPO valuation could be huge as it could raise $9 billion even if it just offered 10% of its shares to the public. This would put it behind Porsche's $9.1 billion IPO in 2021.
However, Shein faced challenges in its plans to go public in the US, with some Capitol Hill lawmakers having lobbied to delay its IPO until they could verify that there is no forced labor in its supply chain, as claimed by some who oppose the Chinese Communist Party (CCP).
It was alleged that the company was using manufacturers in Xinjiang, a region in China where concerns of human rights abuses against the Uyghurs are present, an allegation the company vehemently denied.
Republican Senator Marc Rubio also urged the SEC to press Shein to make additional disclosures and ties to the CCP.
Shein did not immediately respond to reporters' requests for comment.
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