(Bloomberg) — Online fashion retailer Shein is preparing a confidential filing for an initial public offering in London, according to people familiar with the matter, moving forward with its listing plans ahead of a potential change in government in the UK.
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The company is considering filing the draft prospectus as soon as this week, the people said, declining to be identified because the information is private. It may seek a valuation of around £50 billion ($64 billion), one of the people said.
Shein’s preparations don’t mean an offering is imminent, according to some of the people, and the share sale is unlikely to start before the summer at the earliest. Sky News earlier reported the timing of Shein’s IPO.
Talk of the IPO has resurfaced after the UK announced a general election for July 4, with opinion polls showing the opposition Labour party far ahead of the Conservatives. Shein met with the country’s shadow business secretary, Jonathan Reynolds, several times this year, according to people familiar with the matter.
Shein, which was founded in China and is now headquartered in Singapore, declined to comment to Bloomberg News on the IPO.
The offering could become one of the UK’s biggest ever IPOs, clawing back a chunk of the market value London has lost from companies shifting their primary listings to New York. The London Stock Exchange also has largely missed out on this year’s revival of European IPOs.
Read more: London IPO for Shein Would Help Repair Damage From US Defections
The company still needs approval from the China Securities Regulatory Commission to proceed with the listing under new rules that spell out the vetting required of companies ahead of an IPO outside China.
Reynolds has met with Shein several times, first in Davos and more recently in London, at meetings arranged by the London Stock Exchange, people familiar said. The company sought assurances that a Labour government would not block a move to list in the UK. Labour has no intention of blocking the move, but has not conducted its full due diligence yet, the people said.
The opposition Labour party is open to the Chinese fast-fashion company listing in London, but would seek to regulate it in line with UK employment law amid concerns about the business’ treatment of its workers.
Several UK lawmakers, including Liam Byrne, a Labour MP, have expressed concerns publicly about a Chinese company listing in London. Still, the Labour party view is if Shein is listed in London it will be subject to UK employment regulation, and that a fast fashion company does not pose the same security risk as a Chinese tech business.
A Labour spokesperson confirmed they met Shein, saying that “raising investment, productivity and growth is one of Labour’s missions for Government.”
“We expect the highest regulatory standards and business practices from any company operating in the UK. We believe the best way to ensure this is to have more companies operating from and regulated by UK law.”
Bloomberg News reported in February that Shein was actively looking at London as it had judged it unlikely that the US Securities and Exchange Commission would approve a New York IPO. US Senator Marco Rubio was among those asking the SEC to block it, saying the company needs to disclose more about its operations in China.
–With assistance from Jennifer Creery and Thyagu Adinarayan.
(Updates to add comments from UK’s Labour Party.)
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