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China’s $9 billion IPO plans stalled amid COVID outbreak – filings, estimate

FILE PHOTO: The sign for STAR Market is seen ahead of the listing ceremony of the first group of companies on the Shanghai Stock Exchange in Shanghai
FILE PHOTO: A sign for STAR Market, China’s new Nasdaq-style tech board, is seen ahead of the listing ceremony of the first group of companies on the Shanghai Stock Exchange (SSE) in Shanghai, China, July 22, 2019. REUTERS/Stringer

March 30, 2022

SHANGHAI (Reuters) – A wave of Chinese companies have shelved their plans to list domestically, the filings show, as the country’s biggest coronavirus outbreak in two years hampered due diligence and intelligence gathering, impacting on fundraising worth had an impact of more than 9 billion US dollars.

Over the past week, 15 companies seeking initial public offerings (IPOs) in Shanghai’s tech-focused STAR market suspended their bids, almost all citing the impact of the epidemic, stock documents show. The city began the lockdown on Monday.

In Shenzhen, which conducted three rounds of mass testing in March, 67 IPO applicants suspended the IPO this month, citing the need to update disclosures to regulators, according to filings.

The suspension may delay 60 billion yuan ($9.43 billion) worth of fundraising, the official Securities Times estimates.

To minimize the impact, the Shanghai Stock Exchange has pledged to keep capital markets operating stably during the “special” virus control period.

The exchange said Sunday it would continue to review stock sale plans by STAR Market nominees and increase online communications with issuers and underwriters.

($1 = 6.3602 Chinese Renminbi Yuan)

(Reporting by Samuel Shen and Andrew Galbraith; Editing by Kenneth Maxwell)

https://www.oann.com/china-9-billion-ipo-plans-stalled-amid-covid-outbreak-filings-estimate/?utm_source=rss&utm_medium=rss&utm_campaign=china-9-billion-ipo-plans-stalled-amid-covid-outbreak-filings-estimate China’s $9 billion IPO plans stalled amid COVID outbreak – filings, estimate

DUSTIN JONES

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