Shein wins Labor support as it prepares £50bn listing in London

Labor has indicated its support for Shein's possible listing in London, as the Chinese online fashion company prepares to press the button on the world's largest IPO ever made in the UK.

The £52 billion retailer is reportedly set to confidentially file a prospectus for listing on the London Stock Exchange with the Financial Conduct Authority starting this week.

Labor confirmed a report that its MPs had met with the retailer, among “a string of companies, including Shein, looking to invest or to register in Great Britain”.

A party spokesperson said: “Increasing investment, productivity and growth is one of the missions of the Labor government. »

However, this list could prove politically divisive. Shein's decision to opt for London comes after an initial attempt at an IPO in New York was derailed when politicians and regulators raised concerns about tensions between Beijing and Washington.

Senior politicians, including three parliamentary committee chairmen, have questioned efforts to woo Shein, raising concerns about working conditions in its supply chains. p>

Labor said it expected “the highest regulatory standards and business practices” from businesses. operating in the United Kingdom. “We believe the best way to achieve this is to have more businesses operating from and regulated by UK law,” the spokesperson said.

Jonathan Reynolds, shadow business secretary, Sarah Jones, the shadow minister for industry, and Chris Bryant, the shadow minister for creative industries, recently met Donald Tang, executive chairman of Shein, to discuss the listing , the Times reported.

Chancellor Jeremy Hunt also met Tang earlier this year to try to persuade Shein to list in the UK rather than in New York.

The company, which was launched in Nanjing, China. , in 2012, quickly became one of the largest fashion retailers in the world due to its low prices and high sales volumes.

Its head office is in Singapore and, although most of its suppliers are based in China, it does not sell products domestically.

The company has recorded more than 2 billion dollars in profits in 2023, almost double the $1.1 billion in 2021. If listed in the UK, it is understood it could be valued at £50 billion.

The planned filing of a prospectus does not guarantee the company will list in the UK, but people close to the process told Sky News - which was first to report the impending filing – that this represented a significant moment that meant a wave of the town for Shein was very likely.

Shein has already responded to the criticism by saying it takes it seriously visibility across its entire supply chain, had zero tolerance for forced labor and was committed to human rights.

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If Shein were listed in the UK, it would be a significant boost In what has been a dark period for the LSE, with a number of high-profile companies leaving the UK to list elsewhere.

Last month, Paddy Power owner Flutter confirmed it was moving its listing from London to New York, while British chip designer Arm opted to list on Wall Street last August after the government failed to failed to persuade it to list on the UK stock market.

Earlier this year, the Anglo-German travel agency