The big Chinese Shein knocks on the City of London: the operation is worth 60 billion

The big Chinese fashion company Shein is planning the listing on the London Stock Exchange, after the reticence shown by the American authorities to the listing on the New York Stock Exchange. The online sales giant could submit its application for admission this week, at the latest by the end of the month. This was reported by some British media including the Financial Times and Sky News UK.

The largest price in recent years

Shein is ready to submit the application for admission to Financial Conduct Authority (FCA), regulatory and supervisory authority for stock markets in the United Kingdom (the British Consob).

We're talking about one “Confidential” IPO which guarantees greater flexibility and confidentiality to this type of operation, exempting the requesting company from the presentation of sensitive data and information and future strategies, but also gives speed to the operation when it is formalised.

In a latest round of financing, Shein was valued at 66 billion dollars. The value of the operation is therefore around 60 billion dollars, equivalent to approximately 50 billion pounds, which establishes this operation as the largest on the British market in recent years. A big blow for the London Stock Exchange, which has lost a lot of attractiveness to the benefit of the US markets (NYSE and Nasdaq).

Why London?

Shein moved towards a London listing after the diplomatic and commercial tensions between Beijing and Washington have blocked plans for an IPO in New York. Tensions which, however, also affect the United States' Western allies, including the United Kingdom.

Six months ago, Shein had already submitted the preparatory documents to the Securities and Exchange Commission American, but Shein's ties with the Chinese government were a great one obstacle to listing in the USA. The company based in Singapore, a former British colony, therefore decided to attempt its debut in London, freeing itself from the perception of being a company controlled by the Chinese government.

Shein's executive chairman, Donald Tang, told the Financial Times that the company has made “progress” in changing this perception, “but not enough” to win over US authorities.

An “almost” Chinese billionaire giant

Shein was founded in China and most of its suppliers are located in the large Asian economy, but the e-commerce giant wanted free itself from the idea of ​​being controlled by Beijing and decided to stop his based in Singaporea third place even if close to China.

The company filed its 2023 fiscal year with record profits of over 2 billion dollarscompared to the 700 million dollars generated in 2022 and the 1.1 billion in 2021. The size of Shein's balance sheet places it in competition with its European rivals, such as the Swedish H&M, which produced profits of just over 800 million dollars, and the Spanish Inditex (Zara brand), which achieved profits of 5.4 billion euros (about 5.8 billion dollars).