Shein, the fast fashion giant online, has approached an initial public offer (OPI) in London after obtaining the approval of the Financial Behavior Authority (FCA), according to sources familiar with the matter.
The Green Light of the FCA represents a significant milestone in the ambitions of the China founded company to list in the London Stock Exchange, after the confidential presentation of registration documents last June.
However, the company still faces winds against, including the instability of the market triggered by the imposition of the president of the United States, Donald Trump, of 145 percent of tariffs in Chinese goods and strictest regulations in tax free shipments from China to the United States.
Shein, who sells $ 10 dresses and jeans of $ 12 in more than 150 countries and was valued at $ 66 billion in his last fundraising round in 2023, will also need to obtain approvals from Chinese regulators, especially the Regulatory Securities Commission of China (CSRC), for the flow of London, the sources told Reuterers.
The company in recent weeks informed the CSRC about the approval of the FCA, but has not yet received a green light from the regulator, said one of the sources. They declined to be named by Reuters since the information remains private.
Shein and the FCA declined to comment, while the CSRC did not respond to a request for comments.
Shein, whose clothes are produced in thousands of factories mainly in China, last year sought Beijing's approval to become public in London, despite the fact that the company moved its headquarters of Nanjing, China, to Singapore in 2022.
Shein's presentation against CSRC makes him subject to the new Beijing listing rules for Chinese companies that go public on the high seas, Fuentes said.
Shein does not possess or operates any manufacturing installation, and instead obtains its products of around 5,800 third -party contract manufacturers mainly in China, subjecting it to the CSRC listing rules, according to a separated source above.
The rules apply based on “a substance on form”, giving the discretion of CSRC on when and how to implement them, added the source.
Shein sends most of their products directly to air buyers in individually directed packages.
According to the rules of the CSRC, a series of authorities such as the National Development and Reform Commission, which supervises foreign participations in local companies, the cybersecurity regulator and others may be involved in the approval of OPI requests on the high seas.
