Shein has confirmed its intention to join the London Stock Exchange for the first time. Executive Chairman Donald Tang stated this in an interview with the Financial Times while assuring that the initial public offering (IPO) is a natural step in the business's evolution.
“Shein will become a listed company given the process of maturity and scale it is undergoing. It is only a matter of time,” Tang said. The Singapore-based company filed its application with UK regulators last summer, which has intensified scrutiny of its business model, with questions about its environmental impact and working conditions in its supply chain.
However, despite the growing pressure, the senior executive has defended the company's financial soundness, downplaying reports of a 40% drop in its net profit in 2024, placing it at $1 billion. “We have maintained robust annual growth, although margins may fluctuate,” said Donald Tang, who was optimistic and assured that according to the company's calculations, there is currently a global market valued at $2.3 trillion, of which Shein accounts for only 2%.
The choice of London as a stock market destination has also generated speculation. Shein had initially considered going public in New York, but the US authorities rejected the proposal. Asked about this, Tang avoided referring directly to US regulations but reiterated the preference for the UK market: “We believe the London Stock Exchange offers us a suitable platform for our growth and transparency.”
In recent months, the company has stepped up its efforts to improve its reputation in Europe, launching sustainability investment projects and forming internal oversight committees. “We operate according to the laws and regulations of each country,” Tang said, denying allegations about its business model.
As the listing process progresses, Shein remains under the scrutiny of investors and regulators, who will assess its ability to operate with greater transparency and corporate responsibility.
