More firms scrap Asian IPOs as markets slide

By Kennix Chim and Saeed Azhar - Analysis

HONG KONG/SINGAPORE (Reuters) - Two more firms ditched plans for initial public offerings (IPOs) in Asia, adding further gloom to a market which recently showed signs of a revival after a dismal start to the year.

On Thursday, Hong Kong-based bulk cargo shipping firm Maritime Capital Shipping withdrew a Singapore listing worth up to $300 million and Chinese sportswear retailer Xdlong International Co Ltd scrapped a $127 million Hong Kong IPO.

Macau tycoon Stanley Ho's casino flagship, Sociedade de Jogos de Macau Holdings Ltd, raised $494 million in a Hong Kong IPO after pricing its shares at the bottom of an indicated range, sources close to the deal said on Thursday.

The withdrawals come amid a severe downturn in global equities, with MSCI's index of Asia-Pacific shares outside Japan falling 14 percent since the end of May.

The index has fallen 22 percent so far this year.

"Asian IPOs have almost reached a standstill," said Leslie Phang, the Singapore-based head of investments at private client unit of Schroders, which manages $260 billion globally.

"Issuers are unwilling to launch at lowered valuations and investors are more focused on reducing their equity positions."

About 35 companies in Asia-Pacific excluding Japan have withdrawn plans to raise about $20 billion from IPOs so far this year, according to Thomson Reuters data.