Shein Considers Waiving UK Listing Rules for London IPO

By Julie Zhu and Anousha Sakoui
HONG KONG/LONDON (Reuters) – Fast fashion retailer Shein is contemplating asking UK regulators to waive the listing rules that mandate at least 10% of its shares be sold to the public for its planned London flotation, according to two sources familiar with the matter.

The company is exploring this option to facilitate its IPO, as noted by one of the sources.

If this request is approved, it would mark the first instance in London of a company being allowed to list without adhering to the 10% rule.

Shein, headquartered in Singapore, offers $5 tops and $10 dresses, primarily sourced from China. In June, it filed confidentially with the Financial Conduct Authority (FCA) for a London listing.

However, the approval process by Britain's financial regulator is reportedly taking longer than expected, as per last week's Reuters report.

Both sources requested anonymity as they were not authorized to discuss the matter publicly. Shein has chosen not to comment on the situation.

The company was valued at $66 billion during a fundraising round last year. A 10% flotation at that valuation would result in an IPO worth approximately $6.6 billion. The largest European IPO this year was Puig's perfume and fashion deal, valued at $2.9 billion, according to Dealogic.

Details regarding Shein's current valuation and its fundraising goals for the London listing remain unclear.

In 2021, London revised its listing rules to enhance its appeal for companies, reducing the required proportion of shares that need to be floated from 25% to 10%, thereby lowering barriers for substantial IPOs, as stated by the FCA at that time.

In July, the UK implemented the most significant reforms to company listing rules in over thirty years to improve competition with New York and the European Union for attracting new issuers.

Shein began considering a listing on the London Stock Exchange early this year, as reported by Reuters in May, due to the derailment of its original plan to list in New York following opposition from U.S. lawmakers.

Additionally, Shein is awaiting approval from China's securities regulator for its London IPO plans, as previously reported by Reuters. The company's revenues are projected to reach $50 billion this year, a 55% increase from 2023, according to Coresight Research.