Samsonite International SA, the world's biggest luggage maker, raised $1.25 billion after pricing its Hong Kong IPO at the bottom of a revised price range as weak global markets sapped investor demand. Companies including US lender Ally Financial, Australian mining startup Resourcehouse Ltd and Chinese auto parts firm Nanning Baling Technology Co have shelved plans for initial public offerings in recent days because of weak appetite from fund managers and retail investors around the world.
Wind power generator Huaneng Renewables Corp, which followed through with its listing, plunged as much as 11.2 percent in its Hong Kong trading debut on Friday, casting a shadow over upcoming IPOs such as Prada SpA's planned $2.6 billion deal, which is set to price next week.
"Market sentiment has turned recently and some of the recent IPOs haven't performed well. As a result companies are forced to lower prices to factor in the weak demand," said Steven Leung, sales director with UOB Kay Hian Holdings. "Generally, people are concerned when the selling shareholder is a private equity or a venture capital fund," he added.
Global stock markets have been under pressure in recent weeks, with the MSCI All-Country World Index down more than 6 percent since the start of May. Luxembourg-based Samsonite, backed by private equity firm CVC Capital Partners Ltd, priced its IPO at HK$14.50 per share, said two sources with direct knowledge of the deal, declining to be named because details were not yet public.
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