Bloomberg — Shein has brought on more banks to help organize a potential initial public offering (IPO) that could value the online fashion retailer at £50 billion ($65 billion), potentially one of the largest listings in London in recent years, people familiar with the matter said.
Barclays Plc (BCS) y UBS Group AG (UBS) have been chosen as bookrunners for Shein’s IPO, said the people, who asked not to be identified because the information is private. The listing could take place early next year, the people said. Deliberations are ongoing and details of the IPO could still change, the people said.
Read more: Shein confidentially files documents for possible IPO in London
The new banking mandates come as Shein meets with potential investors in New York this week, following a similar meeting in London. The company has been working with Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Morgan Stanley (MS) in preparations for the listing, Bloomberg News has reported.
Representatives for Barclays, UBS and Shein declined to comment.
Shein forwarded its application to London and submitted confidential documents to UK authorities earlier this year after its initial goal of listing in the US failed. The U.S. Securities and Exchange Commission denied Shein’s request to file a preliminary prospectus on a confidential basis. Its listing still requires regulatory approvals in China and the United Kingdom.
Shein’s possible IPO could help regain momentum in London after a series of defections from its stock markets. The city lost big names such as chip designer Arm Holdings Plc (ARM) to New York, and listed firms such as CRH Plc moved their primary listing to the United States to tap into the larger pool of investors there.
Read more: JPMorgan CEO says regulators must reduce hurdles to going public
Founded in China but headquartered in Singapore, Shein has become one of the world’s most valuable startups thanks to its high-volume, ultra-cheap fashion model. Its phenomenal success has generated competition from companies such as ByteDance Ltd.’s TikTok and PDD Holdings Inc.’s Temu.
In the UK, Shein saw its revenue increase 38% in 2023 compared to the previous year, according to a filing last week with the British registry Companies House. Major milestones of the year included the opening of its Manchester office and pop-up stores across the UK, including a bus tour, the company said.
Read more: Shein would not meet the requirements to enter the FTSE 100, according to the Times
“Any company that wants to sell shares in London will face scrutiny over workers’ rights,” UK Prime Minister Keir Starmer told Bloomberg Television on Monday, in response to questions about whether his new Labor government would welcome I welcome a quote from Shein.
Read more at Bloomberg.com
