Exclusive-Online retailer Shein to hold roadshows soon ahead of London IPO, sources say By Reuters

By Julie Chu, Amy Jo Crowley, and Hadeel Al-Sayegh

HONG KONG/LONDON (Reuters) – Sheen is set to hold informal investor meetings in the coming weeks on its planned London initial public offering (IPO), pushing ahead with preparations while it awaits approval from UK regulators, three sources familiar with the matter said. .

The Chinese-founded online retailer plans to hold informal roadshows mainly across Europe, as the IPO-bound company answers questions from major investors and tests their appetite for investment, one of the sources said.

The sources requested anonymity because they are not authorized to speak to the media.

A spokesman for Shein, which is based in Singapore, declined to comment.

Shen filed confidential paperwork with Britain’s markets regulator in early June, beginning the process of a potential London listing by the company later in the year, Reuters reported in June, citing sources.

The company, which was valued at $66 billion last year during a fundraising round, began considering an initial public offering in London earlier this year after its initial plan in New York failed following opposition from US lawmakers.

A separate source familiar with the matter said that Shein is working to launch the flotation in the current quarter, subject to approval from Britain’s markets watchdog, the Financial Conduct Authority (FCA).

As Sheen, known for its $5 T-shirts and $10 dresses, moves toward its market debut, its treatment of workers and its environmental record have come under increasing scrutiny.

The fast-growing company’s ability to convince major global institutional investors of the soundness of its business and financial health will determine whether it is able to match the $66 billion valuation it achieved last year.

Shein’s preparations for a potential London listing represent a shift from its long-standing U.S. IPO plan, which has faced hurdles at home and abroad, Reuters reported.

The sources said that the group secretly filed an initial public offering application with the US Securities and Exchange Commission in November, and at the same time requested approval from the China Securities Regulatory Commission.

However, the China Securities Regulatory Commission (CSRC) informed Shein earlier this year that it would not recommend an IPO in the United States due to the company’s supply chain issues, Reuters reported.

Shein’s stock listing plan in London still requires CSRC approval, and it remains unclear whether the company has received any guidance from the Chinese regulator.

As of Thursday, a review of the CSRC website, which publishes approved IPO candidates overseas, did not mention Shen.

Shein’s financial numbers are not publicly available, but analysts at Bernstein in April estimated that its net profit more than doubled last year to $2 billion from $700 million, giving it a profit margin of 4.4% on sales.

Shein’s stock offering would be a boost to London’s moribund IPO market.

The UK had just nine new listings this year compared to 18 in 2023, according to Dealogic data. It lags behind other European countries, and ranks tenth among EMEA listing venues in terms of IPO value.

This summer, Britain’s markets watchdog accelerated a set of new rules to make it easier and encourage companies to list on the London Stock Exchange as it seeks to catch up with New York and the European Union after Brexit.

Shen faces opposition from several governments in Europe, with Germany, Austria, Denmark, France and the Netherlands writing a joint letter last week calling on EU authorities to apply the bloc’s standards to online platforms and expressing their support for abolishing the tariff exemption on products. Parcels worth less than 150 euros.

Investors said removing such “minimum” tax breaks could hurt Sheen’s profitability.