Fast fashion giant Shein has secured preliminary approval from the City's regulatory body to pursue a listing on the London Stock Exchange.
In early 2023, there were reports that the retailer was preparing for a London listing valued at approximately $50bn, and last month, the Chinese-origin company confirmed its intentions to go public, as reported by .
Originally established in China in 2012, Shein is now headquartered in Singapore.
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According to Reuters, the Financial Conduct Authority (FCA) has recently given the nod to Shein's initial public offering prospectus.
This endorsement by the FCA could represent the final green light required for the retailer's listing, although Chinese regulatory consent remains outstanding.
Shein's latest financials indicate a nearly 40% drop in net profit for 2024, with earnings of $1bn last year, significantly trailing its forecasted $4.8bn.
The potential listing of Shein has sparked debate, as the fast-fashion brand has come under fire for its environmental footprint and labour conditions.
Earlier in the year, Shein faced harsh criticism from MPs and was accused of exhibiting behaviour "bordered on contempt" after a senior lawyer from the company repeatedly declined to respond to inquiries regarding its supply chain practices.
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Moreover, a human rights organisation has warned the FCA of possible legal action should it approve Shein's flotation amid concerns over the company's supply chain practices.
The repercussions of Trump's 125 per cent tariff on Chinese imports could potentially cast a shadow over the proposed floatation of Shein. Bloomberg reported this week that China's Ministry of Commerce had advised the retail behemoth against diversifying its supply chains by sourcing from other countries.
Shein, which mainly manufactures and exports clothing from China, is significantly vulnerable to the ongoing trade conflict between the US and Beijing.