Sources familiar with the situation said an initial public offering on the British stock exchange could be delayed depending on the decision of regulators in Beijing, Reuters reported.
The delay is expected to come because U.S. regulators faced “tougher-than-expected scrutiny” in the country’s election year and because several Chinese regulators went through a “lengthy approval process.”
Shein's intention to list on the New York Stock Exchange was first reported last November after months of speculation.
Sources said Shein has filed with China's securities regulator to go public in the U.S., which will subject him to “Beijing's new stock market rules for Chinese companies going public abroad.”
The new rules governing how Chinese companies can list their products outside mainland China could result in the need for approval from “multiple domestic government agencies” and are likely to complicate the process for Shein and other Chinese retailers.
Founded in 2008 by Chinese billionaire Chris Xu, Shein is backed by investors including Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia Capital China and private equity group General Atlantic.
Shein did not comment.
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