Exclusive | iPhone glass supplier Biel Crystal postpones US$1.5 billion Hong Kong listing amid market rout

Biel Crystal Manufactory, a key iPhone component supplier with factories in Shenzhen and Huizhou, has decided to push back its US$1.5 billion Hong Kong initial public offering because of the recent sell-off in the equities market.

“We have decided to postpone the listing plan amid concerns that the sell-off could affect its pricing, the valuation and the flotation size,” said Yeung Kin-man, chairman of Biel Crystal, the world’s largest smartphone glass cover maker.

“The Hang Seng Index fell from the peak level of 33,000 to 26,000 now. What’s the point to list now? “ Yeung said in a phone interview with the South China Morning Post on Friday.

Infographics: Anatomy of an iPhone – what’s in it and where the parts come from

The multi-year upwards trend of the Hong Kong stock market reversed course in January amid an outlook that includes higher US interest rate and an escalating trade war between the world’s two largest economies. The Hang Seng Index has retreated 12.5 per cent since the beginning of the year.

As market conditions deteriorate, companies that push ahead with their share listings are likely to need to scale back the flotation size.