Shein, the apparel behemoth, has received Britain's Financial Conduct Authority (FCA) nod for its eagerly awaited London IPO. But the firm is yet to receive clearance from China's Securities Regulatory Commission (CSRC), a major step towards its listing plans.
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FCA Approval: Shein has cleared the UK regulatory hurdle, a key step in its IPO process. The FCA approval is subject to Shein making full disclosures regarding its operations and risks.
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CSRC Approval Pending: Even after notifying the CSRC of the FCA approval, Shein still awaits clearance from Chinese regulators. The approval is critical because Shein has substantial operations in China.
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IPO Timeline: The IPO was originally scheduled for the first half of 2025, but delays could extend it to the second half of the year. The company is challenged by US trade policies and criticism of its supply chain practices.
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Market Impact: Shein's listing would give a boost to London's IPO market, which has slowed in recent years. The valuation of the company is likely to be about $50 billion, lower than its last valuation of $66 billion.
Shein's path to listing underscores the intricacies of traversing global regulatory landscapes while meeting geopolitical and ethical issues.
Sources: Reuters, Financial Times, Bloomberg