Palmer IPO Failures Show Hong Kong Prefers Profit to Promise

Australian billionaire Clive Palmer’s much-touted ties with China weren’t enough to convince Hong Kong investors to put up $3.6 billion for shares in his unprofitable iron ore and coal company Resourcehouse Ltd.

Resourcehouse dropped its fourth attempt in two years at an initial public offering in the city on June 4, citing negative global market conditions. The axing came after the company cut the price as much as 30 percent the day before.