In recent months, it has come to light that Shein is considering an Initial Public Offering (IPO) on the London Stock Exchange. If it goes ahead, it could be the UK’s largest IPO ever. Looking for more information on the Shein IPO? Here’s everything you need to know.
What is Shein?
Shein is a Chinese online fast fashion company. Known for selling trendy clothes at rock-bottom prices, it has become the world’s largest fast fashion retailer.
Across the world, Shein has around 90 million active shoppers today, many of whom are in the US. In 2023, the company generated an estimated $32 billion in revenue, about 40% higher than its revenue in 2022.
Last year, PitchBook valued Shein at $66 billion. That equates to roughly £52 billion at today’s GBP/USD exchange rate.
So, we’re talking about a big company here. If it was to proceed with an IPO on the London Stock Exchange, it would be bigger than nearly 90% of FTSE 100 companies.
When is the Shein IPO?
At the moment, we don’t have a date for the Shein IPO. In fact, we don’t even know for sure if the IPO will take place.
We are likely to get more information on the IPO soon, however. And if it is confirmed, things could happen quickly.
How to access the Shein IPO
Because the IPO is not yet confirmed, investors can’t apply to buy Shein shares yet. However, there are steps you can take to prepare to participate in the IPO.
One smart move is to register for IPO alerts with a few major brokers such as Hargreaves Lansdown, AJ Bell, and Interactive Investor . Another good idea is to open a brokerage account so that you can potentially buy shares in the IPO if it goes ahead.
Will Shein shares be worth buying in the IPO?
This is the million-dollar question.
The IPOs of large, well-known companies tend to generate a lot of excitement. As a result, the share prices of these companies often soar after they go public. Arm Holdings is a good example here. After it listed on the Nasdaq in 2023, its share price shot up 25% in a day.
There’s no guarantee that Shein shares will pop like this, however. In the past, the retailer has often been criticised for its environmental impact and potential use of unethical labour practices. These issues could limit demand for the stock, with those who focus on ESG issues sitting on the sidelines. It’s worth noting that there are reports that institutional investors are wary of the potential IPO due to these ethical issues.
One other issue to be aware of with Shein is that it operates in a very competitive industry. Its rivals include the likes of H&M, Zara, Boohoo, and Asos. A lot of these companies have been poor long-term investments. Boohoo shares, for example, have lost around 80% of their value over the last five years.
Of course, there is a chance that Shein shares could soar in an IPO. After all, this is a fast-growing company that has state-of-the-art technology. However, gains are not guaranteed. So, investors should do their research before making any decisions, and not blindly jump into the IPO.
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
You can contact Ed at edward@goodmoneyguide.com
