Nexteer Automotive postpones Hong Kong IPO

The US-based auto parts supplier becomes the latest company to call off a Hong Kong listing attempt, as wild swings in global stock markets continue to erode investor confidence.
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Nexteer makes steering systems for more than 50 customers, the biggest of which is GM
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<div style="text-align: left;"> Nexteer makes steering systems for more than 50 customers, the biggest of which is GM </div>

Nexteer Automotive, a Michigan-based steering and driveline supplier, has decided to postpone its Hong Kong initial public offering of between HK$1.83 billion and HK$2.52 billion $236 million to $325 million, citing “adverse market conditions and significant market volatility”.

The company kicked off the management roadshow and institutional bookbuilding on June 14, braving a tough environment for IPOs, and the deal was scheduled to price yesterday. The Hang Seng Index shed 5.3% between the launch and the close of the order books on Tuesday and despite a 2.4% gain yesterday, it is still down 13% from a recent peak in late May.

The company...

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