Source: Sharecast
The informal meetings were apparently set to be held across Europe, allowing the company to gauge investor interest ahead of the IPO, which remained subject to regulatory approval from the Financial Conduct Authority (FCA).
Reuters said Shein's decision to pursue a London listing followed challenges to its initial plan to float in New York, which faced opposition from US lawmakers and regulatory issues in China.
Despite confidentially filing for a US IPO in late 2022, Shein encountered resistance from the China Securities Regulatory Commission (CSRC), citing supply chain concerns, prompting the company to shift its focus to the UK market.
Valued at $66bn during a fundraising round last year, Reuters said Shein was aiming to secure similar backing from global institutional investors for its IPO.
However, it had faced consistent recent scrutiny over its labour practices and environmental impact - issues that could affect investor confidence in its bid to match its previous valuation.
Shein was facing potential financial challenges due to regulatory shifts in Europe.
Last week, a number of European governments, including Germany and France, urged the European Union to enforce stricter standards on online platforms, which could impact Shein’s profitability.
Specifically, they called for the removal of tax exemptions on parcels valued under €150 - a change that could affect the company's bottom line.
Under European regulation, parcels valued at less than €150 attract VAT at the point of sale, which platforms such as Shein collects, but are exempt from duties and other taxes.
The UK has operated an almost identical scheme since Brexit, with the exemption limit set at £135.
Shein’s potential London IPO could offer a much-needed boost to the UK's sluggish market for new listings, which Reuters said had only seen nine IPOs so far this year, lagging behind other European markets.
Reporting by Josh White for Sharecast.com.