Subscribe $4.99/month
Monday, June 03, 2024
Fast-fashion giant Shein, originally founded in China and now headquartered in Singapore, is considering a historic initial public offering (IPO) on the London Stock Exchange. This move comes after facing significant regulatory challenges in the United States, where lawmakers have raised concerns about the company's labor practices and transparency.
Get our newsletter consisting of our latest articles and content
Shein, the Chinese-founded and Singapore-headquartered fast-fashion giant, is exploring an initial public offering (IPO) that could significantly impact the global financial market. Initially, Shein aimed for a U.S. IPO and confidentially filed with the U.S. Securities and Exchange Commission (SEC) in November 2023. However, the company faces substantial hurdles in the U.S., including scrutiny from lawmakers over its business practices and potential forced labor in its supply chain.
U.S. lawmakers, including Senator Marco Rubio, have urged the SEC to block Shein's IPO unless the company provides more transparency about its operations in China, particularly regarding labor practices in the Xinjiang region. These issues have prompted Shein to consider alternatives, including a possible listing on the London Stock Exchange (LSE).
The potential London IPO could be monumental, possibly becoming the largest in the LSE's history. Shein aims for a valuation around $90 billion, a significant milestone for the British market, which has struggled to maintain its global financial center status post-Brexit.
Shein's IPO journey reflects broader challenges faced by Chinese companies seeking to go public internationally. They must navigate stringent regulations and geopolitical tensions, both from their home country and foreign markets. If successful, Shein's IPO could reinvigorate the IPO market, which has been relatively quiet since 2021.
Business
Michael Kelly is the founder and CEO of Candlestick Media and Trendline News. He's a software developer by trade who took a liking to entrepreneurship after graduating college. He founded Trendline News in July of 2023.
Friday, July 19, 2024
Subscription required
Friday, July 19, 2024
Monday, July 15, 2024
Monday, July 15, 2024