The fast fashion giant Shein has silently arrested his plans for a high profile flotation in the London Stock Exchange, after the growing geopolitical pressure of the aggressive tariff regime of President Trump and the largest commercial tensions with China.
Singapore -based retailer, based in Singapore, has finished contracts with the corporate communications firms of the United Kingdom Brunswick and FGS Global, who had been advising the OPI, The Times reported. The contracts expired this month and were not renewed, indicating a broader setback in IPO preparations.
Originally, Shein had aimed at the third quarter of 2025 for his London list, with a projected assessment of £ 50 billion. However, the company is now expected to delay the float until at least next year, since it dealt with the consequences of Trump’s commercial repression.
A great blow to Shein’s business model came with the USA of the US. The rule had allowed Shein to operate cross -border on scale, avoiding traditional import costs by sending low value packages individually.
In addition to the interruption, Trump’s administration introduced a 145% tariff of Chinese products, which has already brought to price increases for Shein customers and an 8% increase in women’s clothing prices. The resulting uncertainty caused a panic shopping wave among buyers trying to avoid more increases.
To mitigate the risks of excessive dependence on China, Shein has begun to diversify its supply chain, increasing the supply of countries such as Türkiye and Brazil, a complete decoupling of Chinese production remains unlikely.
While Shein had received a preliminary approach from the Financial Behavior Authority (FCA) for the OPI prospect at the beginning of this year, the FCAS signature occurred before the implementation of the Trump tariff regime. The significant changes in the operating model and the company’s risk prospects may require updating its prospect and seeking a new regulatory approach in the United Kingdom.
Moreover, the company still lacks the approval of the China Stock Regulator, an important obstacle that could delay or delay the list even more.
Barclays and UBS had been appointed as betting runners for the list, while Goldman Sachs, JP Morgan and Morgan Stanley were also compromised. It is not clear if the banks remain involved in the light of the apparent pause of the opi.
Neinder Shein or his advisors have commented on the state of the OPI. However, with Trump’s commercial policies that raise supply chains and international expansion strategies, the delayed debut of Shein’s London may indicate deepest deeper challenges for global companies that sail for the political and economic replicas of a newly protectionist in the White House.
Jamie Young
Jamie is a senior reporter of Business Matters, who brings more than a decade of experience in commercial reports of the United Kingdom. Jamie has a business administration title and participates regularly in conferences and industry workshops. When he does not inform about the last business development, Jamie is passionate about the mentoring of promising journalists and businessmen to inspire the next generation of business leaders.
