Former Chancellor of the Exchequer Sajid Javid has been approached about taking a role at Shein, the online fashion giant currently making plans for London’s biggest stock market float in years.
According to sources in the City, Mr. Javid is among several senior figures who have held discussions with Shein’s executive chairman, Donald Tang, in recent weeks. If appointed, Mr. Javid may join Shein’s board or become an adviser to the company, which was founded in China.
Baroness Fairhead, former BBC Trust chair, has also been named as a potential candidate for a role at Shein, as suggested by headhunters advising the company. This reflects Shein’s commitment to corporate governance and their focus on a London listing.
Since leaving the government, Mr. Javid has taken a position with Centricus, an investment firm that attempted to structure an offer for Chelsea Football Club in 2022. A spokesman for Mr. Javid, who had previously stated that he would stand for re-election in his Bromsgrove seat, did not respond to a request for comment.
Recent reports have confirmed Sky News’ initial report that Shein is considering a London IPO due to challenges in obtaining approval from US regulators. The potential IPO could value the company at over £50bn, making it one of the largest in London’s history. Paris has also been considered as a possible listing venue.
Earlier this year, Chancellor Jeremy Hunt met with Shein’s executive chairman in an effort to convince the company to choose London as its listing destination. This highlights the UK’s determination to surpass the US in attracting major IPOs.
If the IPO proceeds, Shein could become the London Stock Exchange’s second-largest in history, behind Glencore International in 2011. Mr. Tang has also met with LSE executives and government officials as part of the company’s IPO preparations.
Shein initially filed documents for a New York listing last year but has since grown concerned that their application may be rejected by the US Securities and Exchange Commission. Goldman Sachs, JP Morgan, and Morgan Stanley are advising on the deal.
Based in Singapore, Shein has become one of the world’s largest online fashion retailers, operating in over 150 countries. However, their growth has faced challenges due to concerns about labor standards.
Last year, Sky News reported that Shein was in talks to acquire British fashion brand Missguided from Mike Ashley’s Frasers Group. While the deal was relatively small, it could lead to a larger collaboration between Shein and Frasers, potentially increasing Shein’s presence in the UK.
Founded in China in 2012, Shein was valued at over $100bn last year, surpassing the combined value of H&M and Zara’s parent company, Inditex. However, their valuation was reduced to $66bn during a share sale in 2020.
Shein has also entered into an agreement with SPARC Group, a joint venture between the owner of Ted Baker and a US shopping mall operator. Under this deal, SPARC’s Forever 21 brand gained distribution on the Shein platform, which has over 150 million users worldwide. Shein also acquired a one-third stake in SPARC, while SPARC took a minority interest in Shein.
London’s efforts to attract Shein to list on the LSE come during a challenging time for the city as a destination for large multinational IPOs. Companies such as ARM Holdings, Flutter Entertainment, and Indivior have all chosen to shift their primary listings to the US, citing higher valuations and more liquid markets. However, London has recently secured potential IPOs from companies such as Raspberry Pi and AOTI, a medical technology provider.
Mr. Hunt recently hosted a summit at Dorneywood with technology companies looking to list in the UK. Shein declined to comment on any potential IPO.
