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Centri’s Christopher Mora Featured in Observer: Why Fast Fashion Giant Shein Is Going Public in London Instead of New York

Centri’s Partner and Capital Markets Practice Leader, Christopher Mora, is featured in an Observer article: Why Fast Fashion Giant Shein Is Going Public in London Instead of New York. The article discusses online fashion retailer Shein’s decision to pursue an initial public offering (IPO) in London rather than the United States.

Shein, originally founded in China but now headquartered in Singapore, is heavily reliant on Chinese suppliers. Six months ago, Shein initially filed paperwork with the US Securities and Exchange Commission (SEC) for an IPO. In response, Florida’s Senator Marco Rubio approached the SEC with concerns over the company’s alleged forced labor practices, relationship with the Chinese government, and other ethics concerns. 

The company was facing a difficult path forward with US regulators. “The amount of disclosure asked for was above and beyond, and would put a lot of pressure on any company, let alone foreign ones,” Mora shared. In response, the company is pursuing steps forward with the Financial Conduct Authority (FCA), the UK’s securities exchange regulator.

The article also discusses concerns about Shein’s shipping practices, which are purportedly designed to avoid import tariffs; however, the allure of the IPO for the London Stock Exchange is hard to deny. The article claims, “At a $64 billion valuation currently, Shein’s IPO would be larger than every London Stock Exchange listing since 2018 combined.”  The London Stock Exchange, with a total size of around $3 trillion, is significantly smaller than the New York Stock Exchange, which has several trillion-dollar company listings.

Centri’s Capital Markets Expertise

If you are looking to go public, considering a capital markets transaction, or looking to enhance current SEC financial reporting and compliance processes, Centri is ready to support you with a team of cross-industry experts who will advise you and your business through every step of the process. We will help build an IPO or capital markets plan as well as help mitigate the accounting and financial risks that come with IPO preparation to ensure that your business has a seamless and successful public market entrance. Contact us to learn more about how Centri can help your company with its IPO preparation or recurring SEC financial reporting and compliance.