Despite these challenges, Shein claims to be committed to improving working and living conditions across its global value chain, as stated on its website.
Investor Sentiment Will Decide
Ultimately, whether Shein can successfully list in London will depend on investor confidence in its disclosures. The due diligence process, led by legal and financial advisers, aims to ensure all potential risks are adequately disclosed in the prospectus.
James Parkes, a partner at CMS Cameron McKenna Nabarro Olswang LLP, emphasized that the changes to listing requirements would not lower the bar for companies with questionable ESG credentials. The FCA retains the power to reject a listing if it finds the disclosures insufficient.
The Market’s Verdict
The true test for Shein’s flotation will be whether investors choose to buy its shares. As Ariel White-Tsimikalis pointed out, the decision to invest ultimately lies with the investors, beyond the regulatory approval process.
The prospective listing of Shein, alongside other companies like Raspberry Pi, signals a potential reawakening of London’s market. Danni Hewson, head of financial analysis at AJ Bell, suggested that Shein’s listing could either be a significant boon or a contentious issue that stimulates global discussion.
