Shein faces more IPO obstacles as UK politicians express concern

Chinese fast fashion giant Shein may be facing more obstacles in its pursuit of an IPO after senior politicians in the UK began expressing their concern over its apparent mission of filing on the London Stock Exchange.

While it had previously been reported that the region’s government was eager to push forward with what would be the second largest listing on London’s stock market, some politicians have now spoken out about the campaign in light of the impending general election.

Speaking to the Guardian, Alicia Kearns, the Conservative chair of the Commons foreign affairs committee, said: “With Shein’s prices so low, the London Stock Exchange needs to ask itself, whose suffering is subsiding those prices?”

“A company which has failed to make full disclosures about its supply chains as required by UK law, and where there are grave concerns about its factory working conditions has no place in London.”

Impending general election dampens Shein’s London IPO chances

A similar sentiment was shared by Labour chair of the international development select committee, Sarah Champion, who told the media outlet: “Transparency in supply chains is vital and something all governments should be demanding. Serious concerns have been raised about the use of modern slavery by Shein which need investigating.”

As campaigns for the general election prepare to launch, with the parliament set to close until the election is finalised, officials are urging for a delay on Shein’s filing in order to ensure that parliamentary scrutiny can remain intact.

The responses mirror that of the backlash Shein had received at its initial pursuit of a US listing, which has seemingly been put on halt after opposing senators advocated to block the IPO due to concerns about the company’s ties to China and its lack of operational transparency.

It was this that reportedly saw Shein turn to the UK as an alternative, with another recent report suggesting that the company had even turned to former chancellor Sajid Javid regarding a potential appointment to its board.