Shein’s boss has held talks with Jeremy Hunt over a possible multi-billion pound London float that could deliver a huge boost to the beleaguered stock market.

Donald Tang met the Chancellor earlier this month and raised the prospect of the City snatching the Chinese-founded fast-fashion giant’s initial public offering (IPO) away from New York.

Reports suggest the company, now based in Singapore, could be valued at between £40billion and £70billion – setting the scene for what could be Britain’s biggest-ever stock market float.

It would represent a much-needed victory for ministers and City chiefs who have been battling to revive London’s status as a global listing venue after a series of blows such as the decision of Cambridge-based chip designer Arm Holdings to head to New York.

IPO: Reports suggest fast fashion group Shein could be valued at between £40bn and £70bn – setting the scene for what could be Britain’s biggest-ever stock market float

IPO: Reports suggest fast fashion group Shein could be valued at between £40bn and £70bn – setting the scene for what could be Britain’s biggest-ever stock market float

Only about £800million was raised in UK IPOs last year as a dearth of companies came to the market, according to Bloomberg data.

Shein has already applied for a US listing but has faced opposition from the likes of Florida Senator Marco Rubio, partly due to claims that it has used cotton from forced labour in China’s Xinjiang region. 

Shein has said it has a ‘zero tolerance policy for forced labour’. That opposition has left it seeking alternative venues – though it could face similar scrutiny in the UK.

However, any move to float in Britain is likely to be hailed as a win for those driving a series of reforms to make it easier and quicker to list on the stock market.

A Treasury spokesman said: ‘We have developed reforms to boost the UK as a destination for IPOs, including making it easier for companies to list more quickly.’ The spokesman said the Government did not comment on individual companies.

Founded in 2012, Shein has enjoyed rapid expansion – thanks to its popularity with budget-conscious younger shoppers in more than 150 countries, using what it describes as a unique business model and efficient supply chain to keep prices low.

It enjoys global sales of more than £20billion including £1.1billion in the UK. 

Shein last year bought UK brand Missguided and has opened an office in Manchester.

Tang, the company’s executive chairman, reportedly held talks with the London Stock Exchange in December over the possibility of a London float.

He met the Chancellor earlier this month and the two men held ‘productive’ discussions, according to Sky News.

The introductory meeting was requested by Tang, a government source said, adding that he had raised the prospect of an IPO.

It was a matter for him, the London Stock Exchange and regulators whether it went ahead, the source added.

Danni Hewson, head of financial analysis at broker AJ Bell, said: ‘Having one of the most disruptive names in retail float in the UK would certainly do wonders to help fix the London Stock Exchange’s damaged reputation as a listing venue.

‘Investor interest could be huge, which bodes well for attracting other names to list in the UK after a patchy spell.’

But the Inter-Parliamentary Alliance on China, a global group of cross-party legislators that campaigns for democracies to stand up to Beijing, voiced alarm.

Executive director Luke de Pulford said: ‘It’s sad to see how far the UK has sunk in such a short time – from a world-leading nation on modern slavery to a haven for companies rejected by our allies for ethical reasons.’

This post first appeared on Dailymail.co.uk

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