After months of speculation, it’s reported that budget fashion e-tail giant Shein has just-about-decided the location for its IPO and London is almost certainly the chosen stock exchange.

Not that Shein has confirmed anything. As it has done during the whole period that has seen speculation buzzing around its IPO intentions, the company has kept its cards close to its chest.

Instead, the news was reported by Sky, which does have a strong track record when it comes to breaking stories about stock exchange-listed fashion firms.

Sky said Shein is “preparing to file a prospectus with the Financial Conduct Authority for approval ahead of its potential float”. Admittedly, that’s still a few steps away from it actually happening, but it’s still closer than it’s been so far. much closer…

If it does opt for a London listing (which observers are now saying is “highly likely”), Shein is expected to be targeting a raise of more than £1 billion from the sale of new shares. But that wouldn’t materially disrupt its current ownership as the business is seen as being worth about £50 billion in total.

The company, which was founded in China and still manufactures there, is now headquartered in Singapore, but its Chinese links meant it would likely have run into difficulties had it pursed what was widely reported to be its original choice — an IPO in New York where the political environment wouldn’t be very welcoming.

City sources told Sky on Sunday that the prospectus filing could now take place as soon as this week, although it could be later this month. There has also been speculation that the IPO itself could happen later this summer or early in the autumn.

If the float does happen in London, it would be the biggest there in over a decade. For a London Stock Exchange that has lost much of its dominance in recent years (as well as losing a number of listed fashion firms such as Ted Baker, Seraphine and, probably, Superdry), it would be a vote of confidence.

For that reason, the British government has been working hard to convince Shein that London is the place to be. Chancellor of the Exchequer Jeremy Hunt recently met Shein executive chairman Donald Tang as part of London’s charm offensive. Former Chancellor Sajid Javid has also reportedly held talks with Shein over possibly joining its board or becoming an advisor to the business.

And Tang is believed to have held discussions with a number of senior Labour politicians too. Given that the polls suggest the UK will have a Labour government by the time of the float, that makes a lot of sense.