E-Land Fashion China Holdings, a spin-off of South Korea's largest fashion retailer, has scrapped its listing plan in Hong Kong due to a disagreement with the sponsors, sources said yesterday.
'The management has decided to pull the transaction despite the deal being fully covered and allocable. Therefore the IPO has been postponed until further notice,' UBS told fund managers.
United States investment banks Citi and Goldman Sachs are also advising on the offering.
The management insisted on a selling price towards the mid-range, while the sponsors preferred the lower end, one source said.
'Most big tickets were placed at the low end,' said a fund manager who took part in the offering. 'Investors always ask for as much downside protection as possible in case the market turns worse.
'The Hong Kong market seems to have peaked recently.'
The Hang Seng Index has dropped almost 800 points in the past four trading days.