Shein set to miss out on FTSE 100 spot as industry body flags concerns
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 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 and retailers,” Caroline Rush, chief executive of the trade body, told the Mail on Sunday.
“Whilst we appreciate that Shein has committed to meeting acceptable industry standards, questions remain about the ethicality and sustainability of a business model and supply chain that consistently undercuts British designers and retailers, and these still need to be answered.”
Shein has been contacted for comment, but it told City PM previously “made significant progress” on improving working conditions for its factory staff.