Coronavirus

Lion Air’s aborted IPO has deeper ramifications for capital markets

The delay to Indonesia’s budget carrier’s listing should have investment bankers very worried: the coronavirus now no longer fits the China-only profile but has infected those merely with exposure to it.

Lion Air, Southeast Asia’s second largest low-cost airlines LCCs, finally joined the increasing list of companies choosing to delay or cancel capital raising activities this year on account of the novel coronavirus. To name two more, Chinese biotech InnoCare, which develops treatments for autoimmune diseases, has delayed investor meetings in Hong Kong, and Japanese restaurant operator Daikiya Group Holdings postponed their plans to go public.

Over the past fifteen years, Lion Air has made several previous attempts to list, only to pull the decision on account of a less favorable macroeconomic or operational environment. In its most recent attempt, it had planned to raise up to $1...

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