Macau casino operator SJM Holdings has decided to launch its US$500 million initial public offering despite a forecast tough week for Hong Kong and mainland markets on renewed concerns over the slowing United States economy, sources said.
Silver Base Group, a distributor for the mainland spirits and cigarette markets, may also start pre-marketing its US$300 million offering early this week after receiving approval from the Hong Kong stock exchange on Thursday last week, sources added.
'Investors now do not have much interest in new listings because of the sluggish stock market and the disappointing performance of recent offerings,' said Ben Kwong Man-bun, the chief operating officer of KGI Asia.
The Hang Seng Index has dropped 18 per cent this year.
The benchmark index is expected to come under pressure today after a retreat by the Dow Jones Industrial Average in the US by 1.83 per cent to 11,842.69 on Friday, the lowest since March 10.
American depositary receipts of key mainland companies including Aluminum Corp of China, CNOOC, China Unicom, China Petroleum and Chemical Corp and PetroChina ended between 0.48 per cent and 3.68 per cent lower than their Friday closes in Hong Kong.
