Xinao Gas (Holdings) has called off today's multi-million-dollar planned listing on the Growth Enterprise Market because of unfavourable market sentiment.
The Hebei-based natural gas supplier said yesterday the company and its underwriter, ABN Amro Rothschild, had failed to agree on a placing price for an initial public offering due to adverse market conditions.
As a result, Xinao said it would not proceed with the listing as scheduled in the company's listing prospectus.
Xinao, which identifies itself as China's largest non-state natural gas distributor via pipeline, planned to place 180 million new shares at between HK$1.15 and HK$1.59 each to raise between HK$207 million and HK$286 million.
The figures means price-earnings ratios of 20 to 28 times based on last year's figures.
In spite of the setback, Jin Yong-sheng, vice-general manager of Xinao Gas, said the company would stick to its Hong Kong flotation plan.
