Shein’s London IPO Stalled Amid US Tariff Fallout

Shein Group Ltd.'s initial public offering plan has slowed to a crawl as the retailer assesses the impact of US tariffs on its business and awaits regulatory approvals, according to people familiar with the matter. 

Enthusiasm for what could be London's biggest IPO in years has been dwindling, with Shein's valuation target sinking and shareholders trying to sell stock at steep discounts in private market deals. In 2023, Shein was targeting an IPO with a valuation of up to $90 billion. By February, it was seen as $30 billion.

Shein filed papers in June for a listing in London, having earlier considered the US. The process was slow even before US President Donald Trump unveiled his barrage of global tariffs, as Shein considered a venue for an IPO while it also came under scrutiny for its supply-chain operations and labor practices. 

Work on the IPO has now halted, the people familiar with the development said, adding that Shein could still proceed with a listing at some point. Shein Executive Chairman Donald Tang said in an interview in March that he was committed to taking the company public.

The slowing progress on Shein's IPO was reported earlier by the Financial Times. A representative for Shein declined to comment. 

Founded in China and now based in Singapore, Shein became an online retail sensation and social-media phenomenon, shipping fast-fashion clothing straight to customers around the world. However, such a business strategy is threatened by the US tariffs and Washington's decision to end the “de minimis” tax exemption for packages of goods under $800 from countries including China. 

Shein has subsequently raised US prices of its products, some by as much as 377%, data analyzed by Bloomberg News showed. The average price for the top 100 beauty and health products rose by 51% from April 24 to April 25.  

Fellow online retailer Temu, owned by PDD Holdings Inc., said Friday it plans to only sell goods from local merchants to American consumers.

While Shein has secured approval from the UK Financial Conduct Authority for an IPO in London, the Chinese regulator hasn't yet given its blessing, which is something the company needs if it is to proceed.