FAST fashion giant Shein could spark a revival in the City with the biggest ever listing in London after butting heads with regulators in New York.
Bosses at the Chinese firm — valued at £32billion ($50billion) — are considering the Square Mile after intense scrutiny from regulators in the US, it has been reported.
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A move would dwarf the record £10billion London float by Russian oil firm Rosneft in 2005.
It would mark a major reversal in the worrying trend of companies snubbing the City in favour of New York’s greater valuations.
Chancellor Jeremy Hunt has held talks with Shein chairman Donald Tang about coming to London, which raised less than £1billion in listings last year.
Shein makes its cheap clothes in around 6,000 factories and has been dubbed “Asos or Boohoo on steroids” because it pumps out more clobber at cheaper prices.
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It made £1billion in UK sales in two years from selling £2 T-shirts and £4 dresses, accounts show.
The business uses AI to comb social media for fashion trends before churning out small batches, adding up to an astonishing 10,000 new styles a day on its app.
Shoppers face longer times to receive goods from its factories in China but young shoppers often make large orders, known on social media as “Shein hauls”.
Shein, which has its HQ in Singapore, has been ramping up in the UK after buying fast fashion retailer Missguided, poaching senior Boohoo staff and setting up an office for British employees.
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The US, meanwhile, is demanding greater transparency about its ownership and funding structure.
There are also claims it sources cotton from forced labour camps.
Shein insists this is not the case.
Danni Hewson, analyst at AJ Bell, said: “A public listing will put a spotlight on its supply chain and ethical and environmental issues that surround fast fashion.
“These won’t matter to all investors.
“Some will simply view Shein as a new opportunity to buy shares in a fast-growing name that’s taking market share from competitors left, right and centre.”
BANKERS are salivating about a London listing by Shein, but if US regulators have concerns shouldn’t British investors too?
Yes, the outfit is fast-growing and tech focused — qualities that gets hearts racing — but the City’s reputation relies on its high standards.
The recent run of big bets on duff firms show funds have been driven by fear of missing out rather than best practice.
Investors should apply a healthy dose of British cynicism to Shein too, and its track record of poor transparency.
M&S pay hike for workers
MARKS & SPENCER is spending £89million boosting pay for its workers as retailers battle to recruit and keep staff.
Minimum pay outside London will rise to £12 an hour with workers in the capital earning £13.15.
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This takes M&S in line with the real living wage.
It means around 40,000 staff will get a salary bump with full-time workers earning £180 more a month.
Paternity leave will increase to six weeks and maternity and adoption leave will double to six months.
Boss Stuart Machin said: “Our vision is to be the most trusted retailer — and that starts with being the most trusted employer”.
Aldi and Sainsbury’s have already raised wages.
The Bank of England has cautioned against a “wage spiral” fuelling inflation.
However, companies have argued they are looking after their staff who have faced rocketing bills in the cost of living crisis.
Women on board
WOMEN now occupy more than two in five seats on the board of the UK’s biggest listed companies, reaching a 40 per cent level three years before target.
The Government’s FTSE Women Leaders review shows that the number of board positions held by females in the FTSE 350 hit a record 42 per cent in January.
But there are still only ten women CEOs in the FTSE 100, while nine firms in the FTSE 350 have all-male boards.
‘No Abrdn split’
THE boss of UK fund manager Abrdn yesterday ruled out breaking up the business despite falling profits and an exodus of customers.
It reported customers had pulled £13.9billion of cash last year.
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As a result profits dipped 5 per cent to £249m.
The business is cutting 500 jobs but boss Stephen Bird pocketed a bonus taking his total pay to £1.1m despite the dim performance.
‘Scrap Budgets’
THE Chancellor should scrap all Budget statements and give firms greater certainty, the boss of the UK’s manufacturing trade body said.
Stephen Phipson of Make UK called for tax and spend policies to be set out for the entire length of parliament.
Two-thirds of members of the organisation had reported frequent changes in policy made it more challenging to make business plans.
Cheer for booze
DRINKERS have hit the booze again this month after abstaining during Dry January, supermarket data reveals.
Alcohol sales jumped 18 per cent in February, with shoppers buying 28 per cent more wine and 16 per cent more beer, according to figures from Kantar.
The market research group confirmed that shop price inflation has fallen to 5.3 per cent — the lowest level since March 2022.
Its figures also show Lidl remains the fastest-growing supermarket as more shoppers switch to discount retailers.
MORE than 140,000 small firms lost their bank accounts last year.
The Treasury select committee heard 2.7 per cent of small businesses were de-banked.
Many were given little or no notice, according to chairwoman Harriett Baldwin.
Currys not hot
CURRYS has dismissed a spiced-up £742million takeover approach from Elliott Investors.
The electricals retailer revealed the US firm, which owns Waterstones, returned with a 67p-a-share offer.
Its initial 62p approach was rejected and analysts agreed it was far too cheap for a firm making £9.5billion in sales.
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Currys has rejected the new offer as “significantly undervaluing” the company.
Its shares were trading at 68p after a leak about the higher offer, before falling to 66.50p.
This post first appeared on thesun.co.uk
