* Cites "general market conditions"
* Had plans to raise about $300 million
(Adds analyst comments and links to Special Report, Factbox)
By Aditi Sharma
BANGALORE, May 27 China's Nobao Renewable Energy
Holdings Ltd shelved its plans to list on the New York Stock
Exchange for the second time in as many years, the latest victim
of investor fatigue triggered by the wave of Chinese companies
flocking to U.S. exchanges.
In its filing with the U.S. Securities and Exchange
Commission on Friday, the company cited "general market
conditions" as a reason for the withdrawal.
David Menlow, president of IPOfinancial.com, said blaming
market conditions was a convenient cover for companies pulling
"It's a way of not taking up the ultimate responsibility
that the deal just was not in demand," Menlow added.
He also said Nobao's overall financials were not inspiring
confidence among investors and the company's "China connection
was not helping" either.
Chinese companies face transparency issues as they undergo
less scrutiny before being allowed to list on a U.S. exchange.
Listings of Chinese companies made up a quarter of U.S.
initial public offerings last year. But more listed Chinese
companies are being accused of fraud, which could drag down the
reputations of the stock exchanges that list them.
Earlier this month, Nobao had filed a preliminary prospectus
with the U.S. Securities and Exchange Commission to raise about
$300 million from this IPO, which was expected to price on
Thursday after the close of U.S. markets.
However, an underwriter had told Reuters that the company
would postpone its IPO indefinitely. [ID:nWEN3735]
Nobao had previously filed for the same-sized IPO in April
2010 and later trimmed back the size to $180 million. Nobao
eventually scrapped the plan to go public in June 2010 amid high
market volatility caused by the debt crisis in Europe.
The Shanghai-based company mostly works on commercial
buildings, installing special modules that use energy stored
underground to heat and cool the buildings and heat water.
Private equity firm Silver Lake had already
invested $12.5 million in the company and has options to invest
another $97.5 million later, according to Nobao's filing with
the SEC in May.
(Reporting by Aditi Sharma and Vidya L Nathan in Bangalore;
Editing by Maju Samuel)