Online fashion giant Shein is considering a delay to an IPO in London in the aftermath of changes to US tariff rules unveiled by President Trump.
Shein, which had previously indicated to investors that an IPO could take place as soon as Easter, is now thought to likely to delay a listing until the second half according to The Financial Times.
The development came in the wake of US tariffs on Chinese products announced by President Trump, and the ending of a ‘de minimis’ duty exemption which is thought to potentially pose a challenge to the low prices that Shein is famous for.
Shein is thought to be building up production capabilities in Vietnam to mitigate the impact of tariffs. It is improving terms on a temporary basis to Chinese suppliers, offering them a 30% increase on procurement prices and bigger guaranteed orders as it moves some production out of China.
A Shein IPO would potentially achieve a blockbuster valuation. However, it would likely be closer to £40bn than the £50bn once mooted.
Shein has attracted controversy over its links to China, including allegations about the use of cotton from the Xinjiang region where there are concerns about the use of forced labour by the Uyghur minority.
No comments yet