Shein is considering selling its shares directly to the British public amid controversy around its possible £50bn stock market flotation on the London Stock Exchange.
The fast fashion retailer is understood to be in the early stages of examining a possible sale to retail investors alongside City institutions, The Telegraph reported.
Typically, companies will sell large amounts of their stock to banks, pension funds and asset managers when they list on the stock market, with individual investors only able to buy shares on the open market once trading begins.
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Shein’s bankers, which include JP Morgan, Goldman Sachs and Morgan Stanley, are thought to be running the rule over proposals to sell directly to the public, however the plans are understood to be at an early stage and no decision has been made.
A retail offer could result in the retailer’s shares being sold to its customers and a broader range of retail investors through specialised platforms.
Shein is understood to have filed the initial paperwork for its estimated £50bn listing with the Financial Conduct Authority in June.
However, the retailer has faced steep criticism from industry leaders since who are concerned over its use of a legal tax loophole for overseas shipments that have given the company an unfair advantage.
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