The FTSE 100 is expected to be boosted as soon as next month when the Chinese online giant Shein announces that it has decided to float its shares in London.
Support for a blockbuster share offer has come from the Chancellor Jeremy Hunt and Labour’s shadow business secretary Johnny Reynolds following last month’s visit to the UK by the fashion groups’s chairman Donald Tang.
Shein originally had indicated a preference for an initial public offering in New York where stock market valuations for on-line firms tend to be much higher.
But a deteriorating political environment for Chinese firms in the US led it to look to London.
With a prospective valuation of £60 billion or more, Shein would immediately join the top rank of firms with London listings if the public offer goes ahead.
Change of heart: Shein originally had indicated a preference for an initial public offering in New York where stock market valuations for on-line firms tend to be much higher
The hostile climate towards China in the US was underlined in the last week when the US Congress gave its assent to a bill forcing ByteDance, the Beijing-based owner of Tik Tok, to divest its US operations on national security grounds. President Biden has signalled that he will sign the bill.
The US fears that the social media platform could provide its parent with access to sensitive data it holds on 170m users.
Based in Singapore, Shein manufactures most of its output in China and uses advanced technology to translate the latest fashion designs into new products. Little is known about the group’s financial underpinnings, which will be revealed in a prospectus at the time of the float.
Founded in Nanking in 2008 by Chris Xu, a US born entrepreneur and search engine expert, it earned its reputation as a low cost clothing brand. Its products are shipped to more than 150 countries worldwide including Britain – one of its bigger markets.
It sources products from some 6,000 factories across China under the Shein label and has been described by Time magazine as the Amazon of fashion.
Nevertheless, its float in London is certain to be controversial. The company has been dogged by allegations of long working hours at some of its factories and operations in parts of China where there are human rights abuses.
But Tang is said to have been reassured by his conversations with UK politicians and took particular care to engage with Labour when he was visiting Britain.
#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .dealFooter {display:block; float:left; width:100%; margin-top:5px; background-color:#e3e3e3 } #fiveDealsWidget .footerText {font-size:10px; margin:10px 10px 10px 10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }
