Swire, SMR Cancel IPO in Hong Kong

The debt crisis in Europe has pushed Swire Properties to cancel its initial public share offering that was expected to raise HK$20.84 billion, says The South China Morning Post.


Citing Dealogic, the newspaper reveals that Swire is the fourth company to call of its initial offering in Asia (excluding Japan) this week. The other three were New Century Shipbuilding, Giti Tire, and Tara Health Food, says the Post.


A fifth name was added to the list on May 10. A source with direct knowledge of a planned IPO of Russian oligarch Oleg Deripaska's Strikeforce Mining & Resources (SMR) told the newspaper that US$200 million offering will also be pulled.

"The company is naturally disappointed at this outcome but feels that it would be wrong to proceed with the proposed spin-off, given the recent sharp deterioration in market sentiment," Swire Group chairman Christopher Pratt told the Post.


Swire's share offer had been expected to be the largest in Hong Kong this year. For its part, SMR's listing would have been the second in Hong Kong for a Russian company. Aluminium manufacturer Rusal was listed in January, raising HK$16.7 billion. It has been trading below it's IPO price, however, reaching HK$8 on May 8, down 26% from its IPO price.



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