Zhongsheng Group Holdings has slashed the size of its initial public offering in Hong Kong to US$500 million because of the poor market condition, says the South China Morning Post.
The newspaper says the Dalian-based car dealer will begin its investor roadshow this week and hopes to raise up to US$1 billion. General Atlantic Partners, a US private equity fund which owns 15% of the auto dealer, will increase its stake before the listing.
According to the Post, other companies have also been affected by the poor market conditions. Wilmar International withdrew its Hong Kong listing and Fujian-based polymer materials producer Sijia Group has postponed its flotation. Meanwhile, a few companies, such as Fook Woo Paper, are reviving their listing plans.