Fast fashion retailer Shein has achieved the approval of the Britain Financial Behavior Authority (FCA) For its initial public offer provided in London, according to two sources with knowledge of the matter.
The approval of the FCA marks a significant advance in the search for the company founded in China to quote in London After having submitted confidential documents before the British regulator last June.
But it will also have to deal with the market agitation caused by the 145% tariffs of US president Donald Trump to Chinese products and the strictest rules on tax free shipments from China to the US.
Shein, who sells US $ 10 dresses and jeans of $ 12 in more than 150 countries and was valued at US $ 66,000 million in its last fundraising round in 2023, You will also need to ensure the approvals of Chinese regulators, In particular, the Chinese Securities Regulatory Commission (CSRC), for the IPO in London, said the sources.
The company informed the CSRC about the approval of the FCA in recent weeks, but has not yet received the authorization of the regulator, according to one of the sources. They refused to reveal their name because the information is confidential. Shein and the FCA refused to comment, while the CSRC did not respond to a request for comments.
Shein, whose clothes are produced in thousands of factories mainly in China, sought Beijing’s approval last year to go over in London, despite the fact that the company had moved its headquarters in Nanjing, China, to Singapore in 2022.
Shein’s presentation to the CSRC makes it subject to the new Beijing contribution rules for Chinese companies that quote on the stock market abroad, the sources said.
Shein does not have or operates any manufacturing installation and, on the other hand, obtains its products of around 5,800 manufacturers hired by third parties, Mainly in China, which submits it to the CSRC contribution rules, said a separate source.
The rules apply on the basis of “the substance on the form”, which gives the CSRC discretion about when and how to implement them, added the source. Shein sends most of their products directly to buyers by air in packages with individual direction.
According to the CSRC standards, a series of authorities such as the National Development and Reform Commission, which supervises foreign participations in local companies, The cybersecurity regulator and others can participate in the approval of IPO offshore applications.
