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Shein may not qualify for inclusion in the FTSE 100 Index, even as the online retailer prepares for an initial public offering that could be one of the largest ever in the UK, The Times reported. The company is expected to fall short of the minimum requirement for shares sold, which affects its eligibility for the FTSE indexes. Stock exchange rules require companies incorporated outside the UK to have a minimum free float of 25%.
- Shein is preparing a confidential filing for an IPO in London, potentially seeking a valuation around £50 billion ($64 billion), according to Bloomberg. However, the IPO is unlikely to occur until after the summer holidays in August, as reported by The Times. Earlier reports from Bloomberg in February indicated that Shein was considering London for its IPO due to the unlikelihood of approval from the US Securities and Exchange Commission for a New York IPO.
Why it matters
Shein's exclusion from the FTSE 100 Index could impact its market visibility and attractiveness to institutional investors, potentially influencing its post-IPO performance.
