Shein reportedly files for London IPO

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.

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)