Shein reportedly files for London IPO
25 June, 2024
Fast-fashion retailer Shein has confidentially filed for an initial public offering in London, following the rejection of its U.S. public listing application in November, according to a report by Reuters.
Shein, the fast-fashion giant, has shifted its IPO plans to London after facing rejections in the US due to controversies over taxes, forced labor, and ties to China's Xinjiang region.
The company has updated the Chinese authorities about the change in listing venue. However, it is yet to receive an approval from the China Securities Regulatory Commission.
The decision to change listing venue comes as Shein's public listing filing had been repeatedly rejected by the U.S. lawmakers, citing the retailer's use of a U.S. tax law exemption, and forced labor in its supply chain. The fashion giant has also faced wrath of U.S.-based competitors by offering latest styles at an affordable price, increasing its customer base, and lowering the market share of other retailers, as per CNBC.
Earlier, Shein has applied for a membership in the U.S. trade association, the National Retail Federation, but was rejected multiple times.
The American lawmakers have also raised concerns about Shein's links to China as it violates a U.S. law, banning products imported from the Xinjiang region in China, where the Chinese government has faced accusations of genocide against the Uyghur ethnic group, as per CNBC.
The retail group later moved its headquarters to Singapore in 2021, but major part of its production is still based in China.(DPA)
Source: fashionunited.uk