Fast-fashion giant Shein is set to miss out on a place in the FTSE 100, according to reports, as the incoming mega listing continues to spark debate in the City. The Sunday Times reported that the number of shares set to be sold by the Singapore-headquartered fast-fashion giant “will fall short of the minimum required to qualify for inclusion in FTSE indices”. London Stock Exchange rules state that companies from outside the UK must have a minimum free float of 25 per cent.
Shein is said to be valued at $66m (£52m), and surpassed $2bn (£1.6bn) profit on sales of $45bn (£35bn) last year. Shein is expected to raise more than £1bn (£79m) from the sale of new shares, according to the report.
The company, which was founded in China, reportedly swapped listing plans from New York to London after facing a hostile response from lawmakers and regulators in the US . The prospect of Shein listing on the London Stock Exchange has divided the City, however, due to claims around how it treats its workers and its general fast-fashion business model. The British Fashion Council, whose members include Mulberry and Burberry, flagged its listing as a “significant concern” to the City.
“At a time when global fashion leaders are rightly focused on making our sector more socially, environmentally, and economically sustainable, the Government’s courting of Shein to list on the London Stock Exchange, and Shein’s decision to do so, is of significant concern to UK fashion designers .
