According to a media report, the fast-fashion giant Shein has confidentially requested a IPO in Hong Kong. The company therefore wants to put pressure on the British supervisory authorities in order to approve a listing in London.
This was reported by the Economic Gazette Financial Times (FT), citing non -named sources. Accordingly, the company, founded in China and based in Singapore, submitted a prospectus design to the Hong Kong Stock Exchange. Now it is an effort to support the Chinese securities supervisory authority (CSRC).
According to the report, Shein focused on Hong Kong after the company had not received any official approval for listing on the London stock exchange. There, the online retailer is said to have applied for a IPO last year.
The company was faced with legal challenges and concerns from NGOs. These related to the lack of transparency in the supply chain. Shein was also accused of obtaining cotton from the Chinese region of Xinjiang, where there were presumably human rights violations.
The British financial supervisory authority (FCA) initially approved the Shein’s brochure. However, the CSRC did not accept the listing due to stricter guidelines.
According to the FT, Shein continues to prefer a listing on the London stock exchange. However, the prerequisite for this is that the FCA accepts a prospectus approved by the CSRC. However, the chances for this are “low, since the requirements of the supervisory authorities are still far apart”.
A dual or secondary list could be considered, according to the FT. The prerequisite for this is that the British supervisory authority agrees to the IPO, Shein received the support of both the CSRC and the Hong Kong Stock Exchange (HKEX).
The FCA, which HKEX and Shein refused to comment on the FT.
This article was used with digital tools translated.
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