Shein to Float Shares in London, Boosting FTSE 100
Quote from VATcal on 29/04/2024, 21:09Fast fashion giant Shein is set to float its shares on the London Stock Exchange, in a move expected to boost the FTSE 100 index. The company, headquartered in Singapore but with its roots in China, had originally considered a New York listing. However, increasing political tensions between the US and China reportedly swayed Shein towards London.
News of the float comes after months of speculation and a visit by Shein's executive chairman, Donald Tang, to the UK in April. Both Chancellor Jeremy Hunt and Labour's shadow business secretary, Johnny Reynolds, voiced their support for the listing, highlighting its potential benefits for the British economy.
Shein's initial public offering (IPO) is expected to be a blockbuster, with valuations reaching as high as £71 billion. This would see the company enter the top ranks of London-listed firms. The news comes as a welcome boost for the London Stock Exchange, which has been vying to attract major tech and online retail businesses.
Shein's decision to list in London is likely linked, at least in part, to the current climate in the US. The recent move by US Congress to force the sale of TikTok's US operations has underscored the growing unease towards Chinese companies operating in America. London, on the other hand, has presented itself as a more welcoming environment.
While the exact timing of the float remains unconfirmed, reports suggest it could happen as soon as next month. Shein's arrival on the London Stock Exchange is sure to be a major event, with its impact felt not just on the financial markets but also on the wider British fashion industry.
Fast fashion giant Shein is set to float its shares on the London Stock Exchange, in a move expected to boost the FTSE 100 index. The company, headquartered in Singapore but with its roots in China, had originally considered a New York listing. However, increasing political tensions between the US and China reportedly swayed Shein towards London.
News of the float comes after months of speculation and a visit by Shein's executive chairman, Donald Tang, to the UK in April. Both Chancellor Jeremy Hunt and Labour's shadow business secretary, Johnny Reynolds, voiced their support for the listing, highlighting its potential benefits for the British economy.
Shein's initial public offering (IPO) is expected to be a blockbuster, with valuations reaching as high as £71 billion. This would see the company enter the top ranks of London-listed firms. The news comes as a welcome boost for the London Stock Exchange, which has been vying to attract major tech and online retail businesses.
Shein's decision to list in London is likely linked, at least in part, to the current climate in the US. The recent move by US Congress to force the sale of TikTok's US operations has underscored the growing unease towards Chinese companies operating in America. London, on the other hand, has presented itself as a more welcoming environment.
While the exact timing of the float remains unconfirmed, reports suggest it could happen as soon as next month. Shein's arrival on the London Stock Exchange is sure to be a major event, with its impact felt not just on the financial markets but also on the wider British fashion industry.
