Swire Properties cancels IPO as markets take a beating

The spin-off from Swire Pacific was aiming to raise up to $2.7 billion ahead of a Hong Kong listing, but in light of the sharp drop in equity markets this week, the company says pushing ahead with the deal would be against the interests of shareholders.

Swire Properties yesterday decided to scrap its initial public offering in Hong Kong as global equity markets continued to fall. The IPO had been set to raise between $2.4 billion and $2.7 billion, which would have made it the largest listing in Hong Kong since China Pacific Insurance's $3.6 billion listing in December last year.

The decision came on the final day of the bookbuild and followed a fourth straight day of losses on the Hang Seng Index, which has been partly led by the property developers. The Hang Seng property index, which tracks the performance of seven Hong Kong-based developers, including Cheung Kong Holdings and Sun Hung Kai Properties, has fallen 6.4% since the...

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