Online retailer Shein will soon hold a pre-IPO roadshow in London, Reuters reported

Shein is set to hold informal meetings with investors in the coming weeks for its planned London initial public offering, three sources familiar with the matter said, as it accelerated preparation pending UK regulatory approval.

The Chinese-founded online retailer plans to hold informal roadshows mainly across Europe, one of the sources said, in which a company preparing for an IPO will field questions from the public. large investors and test their investment appetite.

The sources declined to be named because they were not authorized to speak to the media.

A spokesperson for Singapore-based Shein declined to comment.

Shein secretly filed paperwork with Britain’s markets regulator in early June, kicking off the process for the company to potentially list in London later this year, Reuters reported in June, citing officials. news source.

The company, valued at $66 billion last year in a fundraising round, began considering an IPO in London earlier this year after initial plans in New York fell through following opposition from lawmakers USA.

Shein is working to launch the flotation in the current quarter, provided it receives approval from Britain’s markets watchdog, the Financial Conduct Authority, said a separate source familiar with the matter. This topic says.

As Shein, known for its $5 shirts and $10 dresses, prepares to launch, its treatment of workers and its environmental record have come under increasing scrutiny.

The fast-growing company’s ability to convince major global institutional investors of the soundness of its business case and financial health will determine whether it can achieve its valuation. the $66 billion price tag it achieved last year.

Reuters reported that Shein’s preparation for listing in London marks a change from its long-term IPO plan in the US, which is facing obstacles at home and abroad.

The group secretly filed for an IPO with the US Securities and Exchange Commission in November, and sought approval from China’s securities regulator, sources said.

However, the China Securities Regulatory Commission informed Shein earlier this year that it would not recommend an IPO in the US due to the company’s supply chain problems, Reuters reported.

Shein’s plans to list shares in London still require CSRC approval and it is unclear whether the company will receive any guidance from the Chinese regulator.

As of Thursday, a review on the CSRC website, which publishes approved overseas IPO candidates, did not mention Shein.

Shein’s financial figures are not publicly available, but analysts at Bernstein in April estimated the company’s net profit more than doubled last year to $2 billion from $700 million, delivers a profit margin of 4.4% of revenue.

The Shein share offering would be a boost to London’s moribund IPO market.

According to Dealogic data, the UK has just nine new listings this year compared to 18 in 2023. It ranks behind other European countries and is 10th among European listing venues, Middle East and Africa in terms of IPO value.

Britain’s markets watchdog this summer quickly rolled out a series of new rules to facilitate and encourage companies to list on the London Stock Exchange as the country seeks to catch up. New York and the European Union after Brexit.

Shein is facing opposition from several governments in Europe, with Germany, Austria, Denmark, France and the Netherlands writing a joint letter last week calling on European Union authorities to implement enforce the bloc’s standards on online platforms and expressed their support for eliminating tax exemption for parcels valued under 150 euros.

Investors said eliminating such “minimal” tax breaks could hurt Shein’s profits.