Toyota sales agent puts $1 billion IPO on hold

Bankers blame the current market conditions for Zhongsheng's decision to postpone the deal, but analysts say lofty price expectations by the issuer also played a role.

Zhongsheng Group Holdings, Toyota's major sales and service agent in China, which was supposed to start a roadshow yesterday for its up to $1 billion Hong Kong initial public offering IPO, has put the deal on hold.

The Dalian-based auto retailer, which has represented Toyota under a dealership agreement for the past 15 years, booked more than 50% of its revenue from selling the Japanese brand in China as of September 2009, according to industry watchers.

The troubled Japanese...

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