Bookmark and Share

Greek Crisis Casualty – IPOs all over the World get pushed to the Backburner

2 Comment

One of the biggest causalities of The Greek crisis has  been the  world IPO market.Number of companies all over the world are deferring their IPOs seeing the rise in market volatility . I was earlier thinking that a rash of low quality offerings in the Indian market might be sign of the market top .Seeing the action in the last few days , the thesis is coming partially right though only time will tell whether it was completely right.The Indian government has ambitiously planned a number of state undertakings divestment over the coming year.I wonder whether that will possible if the market continues to yo-yo in such a dangerous manner.Here are some links to the IPO deferments round the world.Some of the recent IPOs like Essar Energy have seen sharp losses after listing despite lowering the price.Some of the big bang IPOs like China’s Ag Bank which are planning an offering will also be deferred I suspect.

IPOs Derailed by Market Plunge as Americold, Ryerson Pull Sales – Bloomberg

Billionaire Ron Burkle’s Americold Realty Trust postponed the largest U.S. initial public offering of 2010, while Smile Brands Group Inc. and Ryerson Holding Corp. shelved sales as stocks plunged the most in a year.

Americold, the warehouse operator owned by Burkle’s Yucaipa Cos., pulled its $660 million IPO yesterday after slashing the midpoint price by 33 percent, according to a regulatory filing and Bloomberg data. Smile Brands, a provider of support services to dental groups, scrapped its $132 million sale, while Chicago- based Ryerson shelved a $424 million deal. Swire Properties Ltd. dropped a plan to raise as much as $2.7 billion in Hong Kong because of “the deterioration in market conditions.”

The postponements derailed the busiest week for U.S. IPOs this year, increasing after waves of computerized trading exacerbated a selloff that sent the Dow Jones Industrial Average down almost 1,000 points. Companies from Berlin-based GSW Immobilien AG to China’s New Century Shipbuilding Ltd. had already pulled initial sales this week amid concern that Europe’s debt crisis will damp a global economic recovery.

Swire Properties Shelves $2.7 Billion Hong Kong IPO – Bloomberg

Swire Properties Ltd., landlord to Time Warner Inc. in Hong Kong, shelved its plan to raise as much as HK$20.8 billion ($2.7 billion) in an initial public offering as a widening government-debt crisis battered the IPO market.

China Tian Yuan Mining Ltd., a Chinese privately owned iron ore producer, also decided to delay its Hong Kong initial share sale today after the Dow Jones Industrial Average had its biggest intraday point loss ever in U.S. trading.

The decision was made after considering “the deterioration in market conditions,” Swire Properties’ parent Swire Pacific Ltd. said in a statement to the Hong Kong stock exchange yesterday. Shares of Swire Pacific rose today when trading resumed, ending an eight-day losing streak as investors assess the losses to be overdone, analyst Kenny Tang said.

Enel could ditch green IPO in favour of partnership deal – BusinessGreen

Plans for one of the world’s largest green IPOs could yet be shelved, after it emerged that Italian energy giant Enel is considering alternative options for its renewables division.

Two sources close to the company told Reuters news agency yesterday that Enel’s chief executive Fulvio Conti was in talks with potential partners who could take some form of stake in its Enel Green Power (EGP) division.

Enel has been planning a €4bn (£3.4bn) IPO for EGP, which operates solar and other renewable energy projects across Italy and Spain, boasting 5.7GW of capacity. However, the timeline for the IPO has slipped from the original plans for a July listing with Conti confirming recently that he expects the unit to float in October.

IPOs Slump as Douglas Dynamics Cuts Size, GSW Pulls – Bloomberg

Douglas Dynamics Inc. cut the price of its initial public offering, while China’s New Century Shipbuilding Ltd. and Germany’s GSW Immobilien AG shelved sales as a widening government-debt crisis roiled the IPO market.

Douglas Dynamics, the Milwaukee-based maker of snowplows, raised 30 percent less than it originally sought yesterday, a filing with the Securities and Exchange Commission and Bloomberg data showed. New Century canceled a $483 million IPO that would have been the biggest in Singapore this year, and GSW pulled its $591 million offering.

Essar Energy Shares Slide After IPO – WSJ

Shares in India’s Essar Energy finished 7.3% below their initial public offering price Tuesday in a lackluster debut for the biggest new listing in at least two years on the London Stock Exchange.

Report: AgBank IPO to Raise $25b in July – JLM Pacific Epoch

Agricultural Bank of China (ABC) may submit an application to the Hong Kong Exchange on May 4 to raise between $25 billion and $26 billion in an initial public offering, 21st Century Business Herald reported May 4 citing Hong Kong media.

If the application is approved, China’s largest privately owned bank will list in Hong Kong in mid-July, the report said. Reports in mid-April quoted ABC executives as saying that the bank planned to raise no less than $30 billion, which would make ABC’s IPO the world’s largest on record, and Reuters quoted sources on Monday as saying that the bank was still targeting proceeds of $30 million.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in

2 Responses so far | Have Your Say!

Trackbacks/Pingbacks