Shein reportedly mulling less than 10 percent share sale ahead of London IPO

Chinese fast fashion giant Shein is believed to be mulling a request to UK regulators to waive listing rules requiring at least 10 percent of its shares be sold to the public ahead of its London IPO.

This is according to Reuters, which cited two sources with knowledge of the matter, one of whom said Shein was exploring this option to facilitate its IPO.

The media outlet said that, if granted, it would likely be the first time a company in London was allowed to list below the 10 percent rule.

It comes as Shein continues to face delays in officially launching the listing after initially filing it in June with the Financial Conduct Authority (FCA).

Recent reports have suggested that the regulator is taking longer than usual to approve the application due to concerns raised by NGOs regarding allegations of forced labour and lack of transparency at Shein.

The company would typically have to bend to the rules of the London Stock Exchange which, in 2021, cut the proportion of shares an issuer is required to float from 25 percent to 10 percent, in an attempt to boost appeal.

Multiple media reports last year suggested that Shein was valued at 66 billion dollars in a fundraising round. At a 10 percent flotation at this value, the IPO would be worth 6.6 billion dollars, Reuters reported.