Hongqiao scraps $2.2 billion Hong Kong IPO

The Chinese aluminium producer delayed its retail offering last week without giving any reason and last night called off the deal blaming weak market conditions.

Hongqiao Group, a leading Chinese aluminium producer which planned to raise up to $2.2 billion in an accelerated Hong Kong IPO, scrapped the deal yesterday, citing weak market conditions and falling prices of the light metal in global markets.

The IPO looked challenging from the beginning. The company kicked off its offering just over a week before the Chinese New Year holidays which start on Thursday this week when market sentiment is routinely weak. And, indeed, during the...

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