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 one-week roadshow, major stock indices worldwide dropped and aluminium spot prices declined.  

The cancellation of the deal, which was to have become the first sizable IPO in Hong Kong this year, is likely to...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222