Expectations that fast-fashion giant Shein will list on the London Stock Exchange have raised concerns about investor protections should human rights abuses in its supply chain cause share prices to drop.
While Shein, based in Singapore, has not publicly confirmed plans for an IPO in London, market analysts believe the company is considering it as an alternative to a New York listing after facing opposition in the U.S. A London IPO would require Shein to meet stringent eligibility and suitability criteria and gain approval from Beijing regulators.
If successful, Shein’s flotation could become the largest-ever on the London Stock Exchange, attracting both direct and indirect investors through index tracker or passive funds. The listing would secure equity financing for Shein’s global expansion.
“We need to ensure that there is a hospitable environment for normal risk-taking,” said Steven Friel, CEO of collective redress litigation specialist Woodsford. “But we also need to ensure that there are consequences for catastrophic breakdowns in corporate governance at public equity companies that cause a significant decline in the share price.”
