LONDON — Shein, the online retail giant founded in China, had big ambitions to go public in New York. But as relations between Washington and Beijing deteriorated, the ultra-fast fashion company began to take a closer look at an alternative plan.
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The company is now focusing more on the London Stock Exchange for its initial public offering, two people with knowledge of the matter report. That would be a big victory for Britain, which worries its capital will lose its status as a global financial center.
Jeremy Hunt, Britain’s top finance official, reportedly courted Shein in anticipation that a major initial public offering (IPO) would bolster London’s position as one of the world’s leading financial centers. A spokeswoman for Shein declined to comment, as did the British Treasury.
London remains a crucial financial center, where precious metals prices are set, billions of dollars in currencies are exchanged and global insurance contracts are drawn up. But global competition for investors — between cities like New York, Hong Kong, Dubai and Singapore — is intense. A large IPO like Shein’s could strengthen the local financial market and lay the groundwork for other companies to follow.
British officials are trying to reform the financial sector to make the London stock market more attractive to modern industries, particularly technology companies, rather than relying on industries, such as banking, that historically built the financial sector. From london.
London’s reputation for financial services also took a hit after Britain left the European Union, amid concerns that banks would move money and workers to the continent. Some of those fears were exaggerated, but Brexit has taken its toll. Amsterdam overtook London as Europe’s largest stock trading center about three years ago, Cboe Global Markets reports.
In recent years, several companies, including building materials company CRH and gambling operator Flutter Entertainment, have moved their main listings from London to New York. Others, such as oil giant Shell, have acknowledged studying the idea.
Those leaving have not been replaced by a wave of companies going public. Last year, Arm, a British computer chip company, listed its shares in New York. That IPO, the largest in 2023, raised nearly $5 billion.
Last year, 16 companies went public in New York, collectively raising $9.5 billion, while 10 went public in London, raising $442.7 million, data from the London Stock Exchange Group reveals.
In recent years, the British government has announced reforms to attract companies, particularly technology startups, to raise capital through an IPO in London. Britain reduced the number of shares a company must hold in public hands from 25 percent to 10 percent and allowed certain dual-class listings in the premium segment of the market.
Other planned changes are anticipated to make it easier for companies to make large acquisitions or other transactions without obtaining shareholder approval.
Shein has said part of the reason for going public is to be more transparent about allegations of poor labor and environmental practices. London is considered to have high standards for business.
Hunt and Bim Afolami, a Treasury minister, met with technology companies last month to promote Britain as a place to raise money.
“For a couple of years we’ve been berating ourselves, but actually this year we’re very optimistic that we’ve really turned a corner,” Afolami said at an event in London last month.
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