Across Asia Multimedia may scale back by half its initial public offer on the Growth Enterprise Market (GEM) because of sluggish market sentiment. Across Asia Multimedia, which is scheduled for a hearing today by the GEM listing committee, also plans to cut the valuation to about half of an originally projected HK$28 billion, sources said. 'When the company first told [Hong Kong Exchanges and Clearing] about its listing plan in March, the market was enthusiastic about tech stocks, and its projected valuation was much higher,' the sources said. 'However, reality has forced the company to scale down its offer size and valuation.' Across Asia Multimedia, the broadband network and Internet technology arm of Indonesia-based Lippo Group, had planned to float 15 per cent to 20 per cent of its shares to the public. However, that may be cut back to between 10 per cent and 15 per cent, the sources said. Proceeds of an issue at this size would amount to about US$120 million, down from the originally hoped-for US$200 million, they said. If Across Asia Multimedia gets the green light today from the GEM hearing, it will become the first Association of Southeast Asian Nations company to list on the second board. GEM listing committee chairman Lo Ka-shui has said regional companies are developing growing interest in the board because they are beginning to view it as the Nasdaq of Asia. Across Asia Multimedia's business includes a controlling stake in Jakarta-listed computer equipment retailer Multipolar Corp. The company also has a controlling stake in Broadband Multimedia, a Jakarta-listed company which operates infrastructure services for entertainment and telecommunications cable distribution networks. Other assets of the GEM candidate include a substantial interest in Indonesian retailer Matahari as well as an electronic commerce operation in Singapore and an Internet content provider in the SAR. Meanwhile, other companies listed on the GEM board have been adversely affected as they have been unable to raise additional funding via secondary issues. Of the seven GEM counters that are free to issue new shares since passing the six-month restriction period on the issue of shares, none has yet applied to the exchange for a secondary issue, said Mr Lo. 'Any market will always have its ups and downs, whether companies want to place new share or not is their own decision,' he said. 'I think this is only a temporary situation, companies will become more active when the market exhibits a turnaround.' One victim is telecommunications-system integrator TS Telecom Technologies, which has delayed its plan to issue new shares to strategic investors while it waits for the market to improve, said Randy Hung King-kuen, chief financial officer at TS Telecom. Shares in TS Telecom last traded at HK$1.24, which is about 20 per cent below its issue price of HK$1.50.