MILAN (Reuters) - Italian plastics group M&G Chemicals postponed a planned share listing on the Hong Kong bourse on Monday due to volatile market conditions, but said it was still committed to growing its business in China.
The world’s third largest producer of PET resin used to make soft drink bottles and packaging had aimed to raise about $600 million through the initial public offering (IPO).
M&G Chemicals, which is part of Italy’s Mossi Ghisolfi Group, had planned to use 50 percent of the proceeds from the IPO to fund the construction of a plant in China’s Anhui province.
“The company is committed to growing its business in China and will continue to do so irrespective of today’s decision,” M&G Chemicals said in a statement.
The offering would have been the biggest new listing by an overseas company in Hong Kong in two years, and the second from an Italian company on the city’s bourse, after fashion group Prada (1913.HK) raised $2.5 billion in June 2011.
M&G Chemicals is the second Italian company to call off IPO plans in two weeks, after freight forwarding company Savino del Bene scrapped a planned Milan listing on December 5.
Reporting by Isla Binnie and Eliza Anzolin; Editing by Louise Heavens