Comment: Shein looks at the London listing analysts warned that it is difficult to com

Source: Bloomberg

Author: Sagarika Jaisinghani, Alexandra Muller, Joe Mayes

The billions of dollars in SHEIN of Fast Fashion Company SHEIN may become the largest IPO in London's history, although analysts worry that the plan reported by Bloomberg News may never be realized.

The company established in China and is popular with young shoppers around the world is seeking listing in New York, but facing American political and regulatory obstacles and Chinese official censorship.Republican Senator Marco Rubio and other American politicians have been urging the US Securities and Exchange Commission (SEC) to prevent SHEIN from listing in the United States. Some reasons for SHEIN's clothing is suspected of using cotton forced labor production in Xinjiang.

According to a person familiar with the matter, under this uncertainty, the British Minister of Finance Jerry Hunter held a talks with SHEIN's executive chairman Tang Wei, which stated that he was interested in listing in London.

The London market has been impacted by several listed companies and the lack of new listed companies, and SHEIN's potential listing will provide significant booster.The current fashion brand headquartered in Singapore submitted listing documents in New York last year. The non -public trading market subsequently valued the company about $ 50 billion.

If SHEIN is listed in the UK with 20%to 25%of its capital in this valuation, the company will exceed the IPO scale of Russia's oil and the 2011 mining giant Jianeng in 2011.This will be twice the size of ARM Holdings PLC in the IPO of New York.ARM's decision to be listed in the United States last year embarrassed Britain. Senior politicians had previously lobby this British chip manufacturer to return to the local market.

"Shein's potential listing in London will bring huge benefits to the stock market," said Joachim Klement, the strategic, accounting and sustainable development director of Liberum Capital."We see many British companies have recently moved to the United States, but it will be a great victory to attract a rapidly growing company in the cross -area cross -sector of technology and retail."

As CRH PLC and Ferguson PLC transferred their main listing places to New York, London Financial City suffered a large number of companies' loss. Gaming companies Flutter and Pharmaceutical Co., Ltd. seemed to be weighing the listing of the United States.

However, SHEIN may not be able to provide a strong needle needed by London.

"If shein is listed in London instead of listing in Hong Kong or New York, I will be shocked," said Ben Harburg, a managing partner of MSA Capital (MSA Capital), said that he added that shein may be seeking chips to overcome the United States.Political obstacles.

Some analysts said that the pressure of boosting the London stock market faced by the British government may lead to SHEIN's regulatory resistance less than the United States.However, AJ Bell Financial Analyst Danni Hewson said that the concerns of the Shein supply chain and the morality and sustainability of fast fashion will still be centered on the UK, making this heavy listing a potential "Poison Chalice") -It seemingly beautiful, but in fact hidden risks.

Shein's consideration of London "mainly because of its supervision of New York's IPO, not the London Stock Exchange's destination of billions of dollars," said XTB research director Kathleen Brooks."Any excitement that SHEIN may be listed in London may quickly retreat, and it is unlikely that Chinese companies listed in London are surging."

Séverine NEERVOORT, the global policy director of

International Corporate Governance Network (ICGN), said the company was "worried about the" competition "in many markets" and she refused to comment on sheet.ICGN has warned Britain not to over -weaken its listing rules in order to attract new businesses.