Graff Diamonds has pulled its planned Hong Kong listing after receiving orders for just half its $1 billion initial public offering less than two days before its deadline – the latest sign of weakness in global equity markets.
The ultra-high-end jeweler had been pinning its hopes for getting the offering away on a final U.S. sales push, said people close to the aborted offering. Management and advisers had been in New York and had planned to meet more than 80 U.S. investors before the end of Thursday, when the offer would have closed.
But a company spokesman on Wednesday night said: “Graff Diamonds Corporation confirms that owing to adverse market conditions it has decided to postpone its planned IPO and listing on the Hong Kong Stock Exchange.
“The Company enjoyed high-quality engagement on its business and strategy from a very broad range of prospective investors, however consistently declining stock markets proved to be a significant barrier to executing the transaction at this time.”
Its efforts to raise funds for expansion in Asia had come as the Eurozone crisis triggered another slide in the world’s financial markets. Other companies have already been forced to pull their IPOs in Hong Kong.Page 1 of 3 | Next Page