Shein wins Labour support as it prepares £50bn London listing

The Labour Party has expressed support for Shein’s potential London listing, as the Chinese online apparel company seeks to launch the UK’s largest-ever stock market IPO.

The £52 billion business is allegedly close to confidentially completing a prospectus for a London Stock Exchange listing with the Financial Conduct Authority as early as this week.

According to a report, Labour MPs met with the store, as well as “a range of companies including Shein that are looking to invest or list in Britain”.

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A spokeswoman for the party stated: “Raising investment, productivity, and growth is one of Labour’s missions for government”

However, the listing could cause political division. Shein’s decision to go with London comes after an original attempt to list in New York was thwarted when lawmakers and regulators expressed worries about relations between Beijing and Washington.

Senior politicians, including three parliamentary committee chairs, have questioned efforts to woo Shein, citing worker problems in its supply networks.

Labour stated that it expects “the highest regulatory standards and business practices” from corporations operating in the UK. “We believe the best way to ensure this is to have more companies operating from and regulated by UK law,” a spokeswoman stated.

Jonathan Reynolds, shadow business secretary, Sarah Jones, shadow minister for industry, and Chris Bryant, shadow minister for creative industries, recently met with Shein’s executive chair, Donald Tang, to explore listing, according to the Times.

Jeremy Hunt, the chancellor, also met Tang earlier this year to convince Shein to list in the UK rather than New York.

Because of its low prices and huge volume sales, the company, which was founded in Nanjing, China in 2012, has quickly grown to become one of the world’s leading fashion stores.

It is headquartered in Singapore, and despite the majority of its suppliers are situated in China, it does not sell products in that nation.

In 2023, the corporation made more than $2 billion in profits, nearly double its $1.1 billion in 2021. If listed in the UK, it is estimated to be worth £50 billion.

The imminent submission of a prospectus does not guarantee that the business would list in the UK, but sources close to the process told Sky News, which first reported the impending filing, that it was a key event that indicated Shein’s City float was quite likely.

Shein has previously responded to criticism by stating that it takes visibility throughout its supply chain seriously, has zero tolerance for forced work, and is devoted to human rights.