Chinese fast-fashion giant Shein is reportedly looking into switching its initial public offering (IPO) from New York to London due to possible issues with a listing in the United States. 

Shein Considers London IPO?

Citing people familiar with the matter, Bloomberg reported that Shein is considering an IPO in London due to its uncertainty about the likelihood of receiving approval from the US Securities and Exchange Commission (SEC).

Shein, which was founded in China but is now headquartered in Singapore, has confidentially filed for an IPO in the US last November amid strained US-China relations. 

If the company decides to move to London or another offshore listing, it must submit a fresh overseas listing application with Chinese regulators. Two sources said Shein is also considering other venues for a listing, such as Hong Kong or Singapore.

Read Also: Shein Faces Scrutiny From China's Internet Regulator Ahead of US IPO

Shein IPO Approval in the UK to Benefit the Country 

According to The Guardian, a listing in the UK could strengthen the nation's position as a major financial hub after many businesses rejected the London Stock Exchange in favor of the New York Nasdaq.

IPOs in the UK reportedly generated £790 million (over $1 billion) last year, the lowest total in decades. Shein's IPO in the US would be among the largest in recent years if listed. 

Shein has experienced significant growth in recent years, capturing a global audience with its designs, extensive product range, and budget-friendly prices. 

However, the company faces challenges in building trust with US regulators, including the elusive public profile of its CEO, Sky Xu, who rarely gives interviews or public statements about the company. 

Also Read: Shein's Annual Revenue Is More Than $30 Billion, Key Retail Partner Says