SHEIN’S IPO PLANS HIT BY US TRADE RULE CHANGE
London: Fast-fashion giant Shein’s plans to list on the London Stock Exchange have been delayed until the second half of this year, following a change in US trade rules, according to a report by the Financial Times.
The company had initially aimed to go public in the first half of this year, but the Trump administration’s decision to repeal the “de minimis” rule has thrown a spanner in the works. The rule, which exempted shipments of less than $800 from import duties, had helped Shein keep prices low in its biggest market, the US.
The removal of the exemption is expected to hurt Shein’s profitability and push up product prices in the US, analysts and industry experts have warned. The company had previously told investors that a London listing could happen as soon as this Easter, but those plans are now on hold.
Shein’s business prospects have come under a cloud in recent days, with the company set to cut its valuation in a potential listing to around $50 billion, nearly a quarter less than its fundraising value of $66 billion in 2023.
The delay in Shein’s IPO plans is a significant setback for the company, which has been expanding rapidly in recent years. The US-China trade tensions have added to the uncertainty, with Shein and rival Temu accounting for more than 30% of all packages shipped to the US each day under the de minimis provision.
Shein did not immediately respond to a request for comment on the delay in its IPO plans. The company’s listing plans are now expected to be pushed back until the second half of this year, as it navigates the changing regulatory landscape.
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