(News Bulletin 247) – The Chinese ultra-fast fashion giant is considering London rather than New York to list on the stock market, according to the economic press.

The IPO of the low-cost fashion giant Shein is taking shape. The ultra-fast fashion brand ultimately chose the London Stock Exchange rather than Wall Street to take its first stock market steps, the Financial Times understands, citing several sources familiar with the matter.

Still according to the financial media, Shein plans to file a “confidential” request with the British stock exchange authorities in the coming days. In this context, Shein would be valued at 50 billion pounds (or 60 billion euros or 64 billion dollars), according to Bloomberg.

This valuation is close to that assigned to it, of $60 billion, during a $2 billion fundraising carried out in May 2023. However, it remains well below the valuation targeted at the end of the year by Shein . Bloomberg reported in early November 2023 that the company was targeting a valuation of up to $90 billion.

Good news for the London coast

If Shein goes through with its project, it would be excellent news for the London coast which has suffered several setbacks in recent years. The distribution specialist for sanitary, heating and pipes products Ferguson has chosen to transfer its main listing to New York in 2022, while remaining listed in London.

When the British champion of microprocessors Arm purely and simply preferred to list on the stock market in New York and not in its country of origin, in the fall of 2023.

“It is clear that London will want the IPO to be a success to help rebuild its reputation as a listing venue, having been deprived of significant listings in recent years,” Russ Mould, director of investments at AJ Bell.

Remember that Shein was founded in 2008 in China and quickly found its audience looking for constantly renewed collections at very low prices. In 2023, the company made a net profit of $2 billion, the Financial Times reported at the end of March.