Shein is holding talks with the London Stock Exchange for a possible initial public offering in the UK, despite already teeing up Wall Street titans Goldman Sachs (NYSE:GS), JPMorgan and Morgan Stanley (NYSE:MS) for a New York listing.
According to a Sky News report, Shein’s executive chairman Donald Tang met LSE executives and associated stakeholders to discuss a flotation during a visit to the capital last week.
A London IPO would be a stunning coup for the beleaguered Square Mile, at a time when listings remain historically low and UK market valuations remain considerably behind their US counterparts.
A Shein IPO would also provide a massive boost of optimism for the City after the calamitous snub from domestic tech giant Arm Holdings in August.
China-founded, Singapore-headquartered Shein is reportedly targeting a $90 billion (£72 billion) public valuation, making it among the most valuable online fashion retailers in the world.
But with the tremendous valuation has come considerable controversy relating to workforce and environmental exploitation.
Greenpeace has accused the company of dumping returned items into landfills as a cheaper alternative to recirculating them.
US lawmakers have also claimed that Uyghur forced labour is being used to make some of its clothes.
Shein would face close scrutiny over these issues due to London’s strict listing rules, though it is too early to tell if there would be any political or regulatory pushback.
If Shein eventually pursues a London IPO, it would be one of the capital’s largest-ever debuts.
A London IPO would likely be priced lower than a New York listing, but would undoubtedly eclipse the last blockbuster London IPO in 2021, when Wise was valued at nearly £8 billion.