👜 Shein Adds Barclays, UBS
Shein has appointed Barclays Plc and UBS Group AG as bookrunners for its upcoming IPO in London, set to value the company at $61B. This move comes as Shein continues its collaboration with top banks like Goldman Sachs, JPMorgan Chase, and Morgan Stanley. Sources indicate the IPO could happen in early 2025, although details are still being finalized. According to Bloomberg, these additional banks will help Shein navigate its high-profile debut on the London Stock Exchange.
📊 Preparing for London IPO
Shein has been preparing for its IPO with informal European roadshows in recent weeks. The roadshows aimed to engage potential investors and address concerns regarding the company’s practices. Shein's IPO preparation has drawn attention due to its size and impact, especially in the competitive fashion market. Its valuation of $61B underscores the scale of this potential public offering. However, the IPO date remains tentative.
💼 Facing Scrutiny
Despite Shein's growth, industry experts are raising questions about the company's labor standards and tax strategies. Many criticize the fast-fashion giant’s use of a tax loophole for overseas shipments, which has been perceived as giving Shein an unfair advantage over competitors. UK leaders, including Prime Minister Sir Keir Starmer, have hinted at increased scrutiny over labor practices for companies listing on the London Stock Exchange. “Any firm hoping to go public in London must adhere to the highest ethical standards,” said Starmer.
📅 IPO Expected in 2025
While there is excitement about Shein’s IPO, it is also seen as a pivotal moment for the company. The IPO, expected in early 2025, could solidify Shein’s status as one of the largest fast-fashion retailers globally. However, the ongoing regulatory review and investor concerns may influence its success. Experts continue to monitor how Shein will address both labor issues and its competitive edge from tax practices as it approaches its public debut.
Will scrutiny impact Shein's $61B IPO success?
