Chinese Wind Turbine Maker Shelves IPO

Company citesd excessive market volatility for canceling IPO

Xinjiang Goldwind Science and Technology confirmed On June 15 that it has axed a US$1.2 billion share sale in Hong Kong due to "excessive market volatility", the latest in a series of ditched listings.

The company said it would be "inadvisable" to press on with the listing on June 22, in what was billed as the city's second-largest initial public offering (IPO) this year after Russian metals giant UC Rusal raised US$2.2 billion in January.

"In light of the deterioration in market conditions and recent unexpected and excessive market volatility, the company... has formed the view that it would be inadvisable to proceed with the global offering at this time," it said in a statement to Hong Kong's stock exchange.

Hong Kong's IPO market -- the biggest in the world last year -- has seen a string of companies hit the brakes on listings in the last month.

In May, Swire Properties, a major real estate developer in the city, cancelled its planned $3.09 billion share sale, just two days after Giti Tire, China's largest tire maker, shelved a $500 million initial public offering.

Iron ore producer China Tian Yuan also halted its $522 million issue last month.

Copyright Agence France-Presse, 2010

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish