Introduction

After political resistance hindered its previous attempt to go public in the United States, fast‑fashion giant Shein is preparing to list on the London Stock Exchange. If approved, the IPO could mark a significant moment for the UK’s financial markets and become one of London’s largest listings in recent years.

This is more than a retail story. At a time when the UK market is under pressure to demonstrate its global relevance, the real test is whether London can compete with New York for major international listings.

Why London?

Shein discreetly sought a US initial public offering (IPO) in 2023, but political and legal uncertainty emerged after American politicians began investigating alleged links between the company’s supply chain and forced labour. Although Shein has denied wrongdoing, the process slowed considerably.

London has since become a pragmatic alternative. The UK has reformed its listing rules to attract high‑growth overseas companies, particularly following several prominent UK‑based firms listing in the United States. Securing a company of Shein’s scale would signal that London remains open for business and capable of hosting major global floats.

The Commercial Stakes

Shein was previously valued at more than $60 billion. Even if market conditions result in a lower valuation, a float of this size would significantly boost liquidity in London’s equity markets.

A transaction of this magnitude generates substantial advisory work. Investment banks would structure and underwrite the offering. Law firms would draft the prospectus and conduct due diligence. Accountants and compliance specialists would review financial reporting and governance frameworks. At a time when listing activity has been relatively low, the IPO would provide a major opportunity for the City’s professional services sector.

The Risks and Political Tension

Controversy surrounding Shein remains ongoing. Campaign groups and politicians continue to raise concerns about labour standards within parts of the company’s supply chain. Institutional investors with strict environmental, social, and governance (ESG) criteria may hesitate to participate.

The UK government’s reputation is also at stake. Ministers have pledged to strengthen supply chain transparency and enforce anti‑modern slavery laws more robustly. Approval of a high‑profile listing that attracts activist criticism could provoke political backlash, particularly if disclosure requirements are viewed as insufficient.

The Financial Conduct Authority will therefore need to strike a careful balance: ensuring strict compliance with UK Listing Rules while reinforcing London’s appeal to international issuers.

How Legal Teams Get Involved

A transaction of this magnitude would require the involvement of multiple legal departments. 

  • Capital market professionals would structure the IPO and manage regulatory documentation.

  • Regulatory specialists would advise on governance compliance and disclosure requirements. 

  • Employment and supply chain lawyers may be required to review labour‑related compliance and overseas supplier contracts.

  • Dispute resolution teams may prepare for potential shareholder or activist litigation following the listing.

Future Outlook

This potential IPO reflects the intensifying competition among global financial centres. Post‑Brexit reforms were designed to make London more flexible and attractive to international businesses. If Shein proceeds with the listing, it would strengthen London’s position as a credible alternative to New York for major global floats.

However, if the deal collapses, concerns about the UK market’s competitiveness may deepen. Either way, the UK’s capital markets are approaching a pivotal moment.