This year is tipped to be another record year for flotations, but poor trading debuts and weak market sentiment over the past week have once again prompted some companies to shelve their listing plans.
Yesterday, palm oil producer Wilmar International said it did not intend to submit a fresh listing application to list Wilmar China in Hong Kong.
Singapore-listed Wilmar is majority owned by PPB Group and Kerry Group, the controlling shareholder of the SCMP Group, which publishes the South China Morning Post.
The company delayed its plan for a US$3.5 billion initial public offering on the Hong Kong stock exchange in September last year, citing unfavourable market conditions.
Following poor first-day trading results from Russian aluminium producer Rusal and coal producer SouthGobi Energy Resources, yesterday's debutant, sportswear manufacturer Meike International Holdings, closed little changed at HK$1.44, fractionally above its offer price of HK$1.43.
Investment bankers that are sponsoring upcoming deals have found real estate stocks particularly difficult to market, adding that institutional investors have taken a wait-and-see approach when it comes to giving away their cash to new listings.
'Market sentiment is weak,' said an investment banker who has been marketing new shares.
