Shein takes a step closer to London listing

According to those familiar with the proceedings, the Singapore-based online retail behemoth, which also operates a sizable business in China, recently submitted the private documents to UK authorities.

During the pandemic, Shein rose to prominence as one of the world's largest fashion stores, but its business strategy has drawn criticism for its negative environmental effects.

The corporation has also faced criticism for several of its working methods, including claims that it uses forced labour in its supply chain, which it disputes.

The Financial Conduct Authority (FCA), a UK regulator, and Shein both declined to comment on the possibility of a London IPO, which may fetch the business a valuation of about £50 billion.

Before selling its shares in the UK, a firm must apply to the FCA to have a prospectus with comprehensive financial data authorised.

The first step in that process is filing paperwork, which moves the firm one step closer to selling shares on the London Stock Exchange and becoming listed in the UK. However, filing papers doesn't guarantee a listing.

Since Shein filed documents in the US late last year, it was really first believed that a listing there would be the most likely course of action. However, due to worries over the company's strong ties to China, both Republican and Democrat officials closely monitored this development.

Shein has been accused on various occasions regarding its business operations, with criticism pointing to slave labour, sweat shops, and illegal trades behind its success.

"SHEIN has a zero-tolerance policy for forced labour and we are committed to respecting human rights," an official from the firm stated. "We require our contract manufacturers to acquire cotton exclusively from authorised locations since we take transparency across our whole supply chain seriously."

(Sources: bbc.co.uk)