Shein receives UK regulatory approval for London IPO
Shein has secured approval from the UK’s financial regulator for its planned initial public offering in London.
Shein has secured approval from the UK’s financial regulator for its planned initial public offering in London.
The China-founded fast fashion company has been waiting for the Financial Conduct Authority’s (FCA) approval since it first confidentially filed papers last June, Reuters reported.
Sources said that Shein will also need to gain approval from Chinese regulators to float in London.
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They said the fashion giant has informed the China Securities Regulatory Commission (CSRC) of the FCA’s approval and is waiting for a response.
Its plans to list on the London Stock Exchange has been fraught with setbacks since its application, after the FCA received challenges about the retailer’s supply chain.
The regulator is thought to have been checking Shein’s supply chain oversight and assessing legal risks after an advocacy group for China’s Uyghur population challenged the listing.
At the start of the year, the retailer was accused by MPs of “wilful ignorance” following what it labelled a “disrespectful” appearance by Yinan Zhu, Shein’s general counsel for Europe, Middle East and Africa.
In a hearing before the business and trade committee, MPs said they had “almost zero confidence in the integrity” of the Shein’s supply chain after Zhu failed to comment on whether it sources cotton from China, and more specifically, the region of Xinjiang.
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