3 Min Read
HONG KONG (Reuters) - China Everbright Bank Co Ltd (601818.SS) has delayed meetings with investors to promote its planned $6 billion Hong Kong share listing, three sources with direct knowledge of the deal said on Friday, underscoring shaky sentiment in global markets and weak IPO performances in Asia.
The mid-sized lender, which planned to start roadshows with investors on Monday and price the deal on July 8, now aims to have the share sale wrapped up by the end of summer, said IFR, a Thomson Reuters publication, citing two sources.
A separate source added China Everbright was still reviewing the market to decide on a time to launch the offering.
The sources couldn't be named because details aren't yet public.
The delay for the investor roadshow comes as volatility in global markets and a steep decline in stocks in Hong Kong reduces investors' appetite for offerings in Asia.
The region had a record $58 billion in withdrawn initial public offerings (IPOs) in the first six months of the year, giving investors the upper hand in demanding lower valuations for companies looking to go public.
The benchmark Hang Seng Index .HSI is down 6.4 percent so far in June, despite posting a 1.9 percent surge on Friday, prompting some investors to stay out of the market and reducing appetite for share sales.
Hosa International (2200.HK), China's largest indoor sportswear company, shelved plans for an IPO of up to $242 million, suffering the same fate as Xing Yuan Power 1156.HK, which planned to raise $121 million.
Apparel maker China Outfitters (1146.HK) didn't price its planned IPO of up to $300 million as scheduled on Thursday and may delay or even reduce the size, IFR said.
Everbright Bank's planned share sale would be among Asia's biggest this year, topping the $5.5 billion raised by Hutchison Port Holdings Trust (HPHT.SI) in Singapore in March.
The bank, which raised $3.2 billion through a Shanghai listing last year, plans to issue 10.5 billion new shares, according to a term sheet seen by Reuters last week.
Everbright Securities Co Ltd (601788.SS), China International Capital Corp, Morgan Stanley (MS.N), JP Morgan Chase & Co (JPM.N), UBS AG UBSN.VX, BNP Paribas SA (BNPP.PA), BOC International, HSBC Holdings Plc (HSBA.L) (0005.HK) and Shenyin Wanguo were hired to manage the offering.
Reporting by Fiona Lau and Elzio Barreto; Editing by Jacqueline Wong and David Holmes