Shein is still waiting for the UK’s financial regulator to approve its IPO after it received challenges about the fast fashion giant’s supply chain.
The Financial Conduct Authority is understood to be checking the retailer’s supply chain oversight and assessing legal risks after an advocacy group for China’s Uyghur population challenged the listing that was filed in June, Reuters reported.
Britain’s Independent Anti-Slavery Commissioner has also flagged concerns within government over a Shein IPO in London because of allegations about labour practices at its suppliers.
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It comes as the retailer is also awaiting approval from China’s securities regulator for its London IPO, sources told the publication, adding that the approval would likely come after the FCA’s decision.
Advocacy group Stop Uyghur Genocide (SUG) launched a legal challenge in June and sent the FCA a dossier in August claiming that Shein uses cotton from China’s Xinjiang region, which has linked to forced labour.
The fashion giant is understood to be looking to launch its IPO, estimated to value it at £50bn, in the first quarter of next year, subject to pending regulatory approvals.
Shein overtook rival Boohoo earlier this year as it reported its pre-tax profits for its UK business had doubled to £24.4m in the year to end of December compared to Boohoo’s £147.3m loss in the six months to August.
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