First Time for a Company to Potentially List Below the Rule in London

  • Shein may request a waiver for the 10% public share requirement in its London floatation
  • London changed its listing rules in 2021 to attract more companies, reducing the required shares from 25% to 10%
  • Shein confidentially filed with FCA in June for a London listing
  • FCA is reportedly investigating Shein’s supply chain due to a challenge from an advocacy group
  • Shein awaiting approval from China’s securities regulator

Fast-fashion giant Shein is reportedly considering requesting UK regulators to waive the 10% share requirement for its planned London IPO. If approved, it would be the first instance of a company listing below this threshold. In 2021, London adjusted its rules to attract more companies by reducing the shares needed from 25% to 10%. Shein confidentially filed with the Financial Conduct Authority (FCA) in June but is facing an investigation into its supply chain due to a challenge from a Uyghur advocacy group. The company is also awaiting approval from China’s securities regulator.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Shein’s consideration to waive listing rules and its confidential filing with the Financial Conduct Authority (FCA). It also mentions the recent changes in London’s listing rules and the involvement of an advocacy group for China’s Uyghur population. However, it lacks details on the current valuation of Shein and the amount it is looking to raise via the London listing.
Noise Level: 3
Noise Justification: The article provides relevant information about Shein’s potential move to waive listing rules and its IPO plans in London, but it lacks in-depth analysis or exploration of the implications of such a decision. It also does not offer much insight into the company’s supply chain concerns raised by an advocacy group.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Shein’s potential IPO in London and its impact on the company’s valuation, as well as changes in listing rules to attract more companies. It also mentions the involvement of financial regulators such as the Financial Conduct Authority and China’s securities regulator.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it doesn’t mention any major impact or consequences.

Reported publicly: www.retailsector.co.uk