China Shipping Nauticgreen, a container leasing arm of China Shipping Group, has scrapped its proposed initial public offering due to market volatility in the United States and Hong Kong.
The company called off the local listing plan yesterday, though people familiar with the situation said the Asian leg of its book-running exercise was fully subscribed after road shows on Monday.
A decision was nonetheless taken not to proceed with road shows in Europe and the US in light of the fall in global stock markets.
Deutsche Bank and China Merchants Securities are the sponsors and book runners of the IPO.
The Hang Seng Index has dropped 4 per cent over the past month amid concerns that the recovery of the global economy would be stalled by the potential downgrade of the US dollar. The index closed another 0.49 per cent lower yesterday at 21,884 points.
As one of the top-10 container-leasing companies in the world, Nauticgreen owns and manages 283,538 containers, representing 456,416 20ft equivalent units. Its net profit last year jumped to US$37.2 million from US$19.5 million in 2009, and sales were up 48 per cent to US$79.7 million.