China $9 billion IPO plans stalled amid COVID outbreak


China $9 billion IPO plans stalled amid COVID outbreak : Rashtra News

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Shanghai: A wave of Chinese companies have halted domestic listing plans, filings show, as the country’s biggest coronavirus outbreak in two years hampered due diligence and information gathering, affecting an estimated $9 billion-plus in fundraising.

Over the past week, 15 companies seeking initial public offerings (IPOs) on Shanghai’s tech-focused STAR Market have suspended applications, almost all citing the impact of the epidemic, exchange filings showed. The city started lockdowns on Monday.

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

The suspension potentially delays fundraising worth 60 billion yuan ($9.43 billion), the official newspaper Securities Times estimated.

To minimise the impact, the Shanghai Stock Exchange has vowed to maintain the steady operation of capital markets during the “special” virus control period.

The bourse said on Sunday it would continue to vet share sale plans by STAR Market candidates and strengthen online communications with issuers and underwriters.

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( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a feed.)

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