Market volatility takes toll on listings

Equity market volatility prompted Huaneng Renewables to pull its Hong Kong initial public offering, and rival China Datang Corp Renewable Power has priced its global share offering at the low end of its indicative range in Hong Kong.

Hong Kong has been the world's top market for flotations this year, but Huaneng Renewables is the third company in as many weeks to shelve a listing plan.

Bluestar Adisseo Nutrition Group, an animal nutrition company controlled by state-owned China National Chemical, decided not to proceed with its up to US$1.56 billion share offer late last month, citing poor market conditions.

Chemical firm China New Materials on Sunday cancelled its HK$681.5 million fund-raising and listing plan after founding chairman Zhang Kaijun was named as a co-defendant in a court writ of an undisclosed nature.

Huaneng Renewables said that, having consulted its sponsors and book-runners, 'it would be inadvisable to proceed with the global offering at this time'.

A subsidiary of the nation's largest power producer, China Huaneng Group, the company cited 'the change in market conditions and recent unexpected and excessive market volatility' for the ending of the offer a week after opening the order book for new shares.

China Datang Renewable is expected to price its shares at HK$2.33, the low end of the HK$2.33 to HK$3.18 indicative price range, three people familiar with the deal said.