After months of speculation, Shein has confirmed it will float its shares on the London Stock Exchange as soon as next month.

It was initially reported that Shein was in talks with London Stock Exchange bosses at the end of last year. The retailer which sells dresses for as little as £5 will place its £71 billion listing on FTSE 100.

Support for a blockbuster listing came from Chancellor Jeremy Hunt and Labour’s Shadow Business Secretary Johnny Reynolds. This followed a visit from Shein’s Chairman Donald Tang last month.

The China-founded company originally indicated a preference for an initial public offering in New York where stock market valuations for online firms tend to be much higher. It filed documents for the US listing back in November. However, the latest threat by the US Congress to ban Chinese social media site TikTok was thought to have been the final kicker in moving away from a New York listing, leaving less risk in the UK.

Established in 2012, the business has mushroomed due to its cheap clothing and appeal to Gen Z consumers, and is now valued at around £53.8 billion. But the e-tailer has faced backlash for its environmental impact and treatment of workers in China.

Shein has already made meaningful ties to the UK with plans to open a hub in Manchester, which is the home of the UK fast fashion industry housing HQs for the likes of Boohoo and In The Style. It also acquired Manchester-based fast fashion brand Missguided from Frasers Group in October last year, marking its first UK acquisition.

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