Mando China Holdings Ltd announced last Friday its decision to postpone its initial public offer of shares at the Hong Kong Stock Exchange. The reasons provided by the company controlled by South Korean auto parts manufacturer Mando Corp was the presence of what it calls 'adverse market conditions' and 'significant market volatility'.
Mando China together with its majority shareholder Mando Corp had launched the IPO last week. It had offered 243.4 million shares with a price range between HK$6.80 and HK$8.60 per share. With the upper end of the valuation, the total deal was expected to net HK$2.09 billion or US$270 million.
The decision to halt the trading of the IPO comes one day after a sharp selloff of shares was experienced fueled about the concerns as to the growth of China and the reduced economic growth projections of the United States.
In its regulatory documentation filed, Mando China said it plans to push through with the listing and would be monitoring the conditions for the proper time that the shares would be returned to the bourse to continue the IPO.
The sole sponsor of the IPO was Deutsche Bank with the joint global coordinator being Morgan Stanley.
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