Hong Kong's image as a capital-raising centre for mainland companies suffered a further blow yesterday after Shandong International Power Development (SIPD) became the third initial public offering of the year to collapse. The company postponed its proposed H-share issue citing 'growing concerns over emerging markets'. The decision underlines the souring of international investor sentiment towards mainland companies following the bankruptcy of Guangdong International Trust and Investment Corp (Gitic) and debt difficulties at other mainland firms. The shelving of the issue follows the failure of fellow H-share candidate Heilongjiang Agriculture and mainland-linked Zhujiang Steel Pipe to list earlier this year. The decision represents a heavy blow for SIPD, which was making its third attempt since 1994 to list in Hong Kong. It had hoped to raise up to $2.2 billion. Analysts said the delay could slow the pace of future new issues, although the SAR remained a key capital-raising venue for mainland firms. 'I think the new-issue market for mainland plays is closed until June,' one analyst said. 'Nobody is going to abandon the mainland market, but investors are not going to put money into mainland companies until things have been cleared up.' SIPD's decision was foreshadowed last week after the company extended its offer period and reportedly lowered its asking price in a last-ditch effort to secure enough buyers. None of the underwriting syndicates, excluding sponsor Goldman Sachs (Asia), had received a single order for the issue's international tranche as of Friday. SIPD and Goldman Sachs yesterday shrugged off factors from 'unrealistic' pricing to bad timing and an abundance of power stocks available to investors. SIPD last night said: 'The directors have come to their decision after considering the recent highly volatile conditions, which the directors believe are inhibiting the market from recognising a fair value for the H shares.' The company denied it had considered or discussed lowering its pricing below the $1.38 to $1.73 range stated in its prospectus. Goldman Sachs director of corporate communications Peter Rose said the H-share issue would be re-launched 'as soon as possible' when market stability returned - subject to legal and regulatory hurdles. He would not give a timetable. However, analysts said it might be difficult for SIPD to make a comeback - at least in the near term. 'Investors are less than willing to take up shares in a company that continuously failed to generate sufficient investor interest in a share sale,' one fund manager said. United States-based Southern Co, which had agreed to subscribe to 40 per cent of SIPD's new issue, equivalent to 9.9 per cent of the H share's enlarged share capital, yesterday said its intention to buy a strategic stake in the company remained despite the issue's postponement. Chief financial officer Edwin Adams said: 'We are confident in the company and will continue to be supportive of the firm.' Having failed to list in Hong Kong, SIPD could opt for a domestic listing instead, following the example of China World Trade Center, a Beijing property unit partly owned by Shangri-La Asia. SIPD could not be reached for comment yesterday. Analysts said the fact that the year's three new issues had failed to generate enough interest was an indication of investors' caution towards the mainland. 'There won't be mainland IPO deals - not until the mainland economy is improving,' one analyst said. 'People are very concerned about disclosure. Gitic and Guangnan (Holdings) are big surprises, and they are only the tip of the iceberg.'