Online fashion retailer Shein confidentially filed papers in early June with Britain’s market regulator for a potential London listing later this year. According to Bloomberg, this initial public offering (IPO) could be London’s biggest IPO in the past ten years.
Details of Shein’s IPO
Furthermore, the report stated that the IPO could be valued at $66 billion. It is not yet clear when Shein plans to launch the IPO. Additionally, the company has updated China’s securities regulator about its change of listing venue but has yet to receive approval from the China Securities Regulatory Commission (CSRC). If the retailer gets clearance from both the UK’s Financial Conduct Authority (FCA) and the CSRC, Shein would be able to publicly file an intention to float on the London Stock Exchange.
Last year, Shein, founded in China, began exploring a London Stock Exchange listing after plans for a New York listing faced opposition from U.S. lawmakers.
Is the IPO ETF a Good Investment?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Renaissance IPO ETF (NYSEARCA:IPO) shares based on 43 Buys and 11 Holds assigned in the past three months, as indicated by the graphic below. After a more than 25% rally in its share price over the past year, the average IPO price target of $46.27 per share implies a 17.2% upside potential.
