Chinese fast-fashion giant Shein is apparently considering a request to British regulators to overturn stock market rules that require the sale of at least 10 percent of its shares to the public before its London IPO.
This is reported by the Reuters news agency, citing two sources familiar with the matter, one of whom said that Shein is exploring this option to facilitate the IPO.
According to the Reuters report, if approved, it would likely be the first time a company in London has been granted permission to list below the 10 percent rule.
Shein continues to face delays to its initial public offering after it was originally filed with the Financial Conduct Authority (FCA) in June.
Recent reports suggest the regulator is taking longer than usual to approve the application as NGOs have raised concerns about allegations of forced labor and a lack of transparency at Shein.
Normally the company would have to adhere to the rules of the London Stock Exchange, which in 2021 reduced the proportion of shares that an issuer must issue from 25 percent to 10 percent in order to increase its attractiveness.
Several media reports last year suggested that Shein was valued at $66 billion (€62.8 billion) in a financing round. Issuing 10 percent of shares at that value, the IPO would raise $6.6 billion (€6.28 billion), Reuters reported.
This article previously appeared on Fashionunited.fr and was created using digital tools translated.
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