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Shein is considering moving its massive IPO from New York to London amid scrutiny over its supply chains and ties to China

Shoppers Ashley Sanchez, right, of Fontana, and Joscelin Flores are among the first group of shoppers taking the opportunity to shop on the opening day of fast fashion e-commerce giant Shein, which is hosting a brick-and-mortar pop up inside Forever 21 at the Ontario Mills Mall in Ontario Thursday, Oct. 19, 2023.
Shoppers at a brick-and-mortar pop-up inside Forever 21 at the Ontario Mills Mall in Ontario, Canada.Allen J. Schaben/Los Angeles Times/Getty Images
  • Fast-fashion giant Shein is considering moving its IPO from New York to London.

  • The company prefers to list in the US, but is anticipating the SEC will not approve its application.

  • US lawmakers have cited concerns over Shein's supply chain and its ties to the Chinese Communist Party.

Fast-fashion brand Shein may move its initial public offering, or IPO, from New York to London, Bloomberg reported on Tuesday.

The retailer, which was founded in China but is now based in Singapore, confidentially filed to go public last year. It was seeking a valuation of $80 billion to $90 billion, Bloomberg reported at the time.

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Shein — which is known for its super-fast turnover of trendy items at rock-bottom prices — still prefers to list in the US, but is considering listing in London as it thinks the US Securities and Exchange Commission will not approve its IPO, Bloomberg reported, citing people with knowledge of the application.

It's also considering Hong Kong or Singapore as potential IPO locations, according to the media outlet.

Shein's IPO could be a huge one. If the retailer is valued at $90 billion, it would be able to raise $9 billion even if just 10% of its shares go public. This would put it just behind Porsche's $9.1 billion IPO in 2021, per Bloomberg records.

However, Shein faces challenges in its plans to go public in the US.

US lawmakers have lobbied to delay Shein's public offering until they can verify there's no forced labor in its supply chain. Shein has repeatedly said it does not use manufacturers in Xinjiang, where there are concerns over human rights abuses.

Republican senator Marc Rubio has also urged the SEC to press Shein to make additional disclosures about its operations and ties to the Chinese Communist Party.

Shein did not immediately respond to a request for comment from Business Insider.

Read the original article on Business Insider