London likely to miss out on Shein's major IPO, company eyes Hong Kong

The planned major IPO of Shein in London appears to be off the table. According to sources from Bloomberg, discussions are underway within the Chinese clothing company to change the plans, with the IPO possibly taking place in Hong Kong instead.

Last year, Shein announced it was seeking approval to publicly sell shares in the UK, with the company valued at €59 billion at the time. However, notably, Shein did not receive approval from Chinese regulators, while the British regulator did grant permission.

Shein, based in Singapore, is reportedly set to submit a draft prospectus to the Hong Kong stock exchange in the coming weeks, aiming for a listing within a year. The company has not yet responded to media reports.

The IPO process has been rocky, with initial plans to list in New York facing hurdles due to economic tensions between the US and China. US politicians have criticized Shein over labor conditions in its supply chain.