Beijing Jingneng Clean Energy Co. and CT Environmental Group Ltd. shelved initial public offerings in Hong Kong yesterday, in the city’s worst month for suspended IPOs in more than a decade.
Beijing Jingneng, the largest gas-fired power provider in that city, postponed its HK$4.9 billion ($630 million) IPO, while CT Environmental put off its HK$693 million offering, according to statements made to the Hong Kong stock exchange.
At least six companies have withdrawn or postponed Hong Kong initial offerings this month as the benchmark Hang Seng Index sank to a nine-month low. All but five of the 18 Hong Kong IPOs this year larger than $100 million are trading below their offering prices, data compiled by Bloomberg show.
Current market conditions make it “inadvisable to proceed,” Beijing Jingneng said in its statement. The company planned to sell 2.36 billion shares for HK$1.63 to HK$2.08 each, according to Bloomberg data. Goldman Sachs Group Inc. (GS), UBS AG (UBSN), Bank of China Ltd. and Barclays Plc (BARC) were hired to manage the Beijing-based company’s offering.
CT Environmental cited “continued market volatility” for its withdrawal. The Guangzhou, China-based industrial-sewage treatment company had offered 291 million shares for as much as $2.38 apiece, Bloomberg data show. Citigroup Inc. (C) was hired to lead the offering, according to the data.
Separately, King Stone Energy Group Ltd. and Celestial Asia Securities Holdings Ltd. (1049) terminated planned issues of additional shares, according to Hong Kong stock exchange filings yesterday. Celestial cited “marked conditions” for the cancellation. King Stone didn’t give a reason.