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The fast Shein Shein fashion group for a British stock bumper list should be delayed after Donald Trump’s repression against imports without a price of small goods from China.
Shein, which sells clothes directly in thousands of Chinese factories at ultra-basic prices around the world, had previously told investors during the roadshows that a registration in London could occur as soon as these Easter, according to people being aware of the discussions.
But a first public offer should now be pushed into the second half of this year after Trump’s decision to conclude the so-called minimis rules, according to three people familiar with the process.
The company, which was evaluated at 66 billion dollars during its last financing round in 2023, has never publicly confirmed a calendar or plans for an IPO, which would lend a lot of stern to the capital markets dull from London.
The group, founded in China and based in Singapore, filed confidential documents in June from last year to British regulators for an IPO proposed and still awaits regulatory leading in the United Kingdom and China.
Shein’s plans, the main markets of which include the United States and the United Kingdom, to publicly list a proportion of its actions have been hampered by geopolitics during the last 18 months.
American repression affects Chinese electronic commerce companies such as Shein and Temu. The American president announced earlier this month that the minimis rule – or the exemption from goods on goods of less than $ 800 – would be deleted and an additional 10% of prices on all Chinese products would apply.
Trump temporarily interrupted measures to fill the escape “until adequate systems are in place to treat fully and quickly and perceive pricing income” after the packages accumulated on the border.
The uncertainty about its impact and its calendar weighs on the schedule of the IPO of Shein, said people familiar with its plans.
Shein’s activities have increased quickly from the cocovid-19 pandemic, largely due to the minimis rule. A report by the American Congress said that more than 30% of shipments in America under such exemptions came from Shein and Rival Temu, which belongs to the Chinese Electronic Commerce Giant PDD and which is also focused on cheaper goods.
More than half of the minimis expeditions entering the United States come from China, according to customs data and American border protection, and the average value of these orders was around $ 50. During the first three quarters of 2024, $ 47.8 billion in these goods were dispatched.
The repression pushed Shein to focus on its supply chain, although the group has not stopped working on its IPO and still pressure for the approval of the United Kingdom, according to one of the people familiar with his plans.
Shein would also need a special UK Financial Authority derogation if he should list less than 10% of his shares.
Shein had initially targeted New York as a place of IPO, but moved to London after being postponed by American regulators. In October, its Reclus Sky Xu billionaire co-founder met investors in the United Kingdom and the United States in anticipation of a flotation.
Shein refused to comment.
RBC Capital Markets analysts said this week that Minmis changes were a threat to the sales models of Shein and Temu and could increase prices.
