Wah Kwong Maritime Transport Holdings, a shipping firm owned by George Chao Sze-kwong, has scrapped its up to HK$1.27 billion initial public offering as the company and the deal's arrangers failed to agree on valuation, sources said.
The shipping firm confirmed in a Hong Kong stock exchange filing yesterday that it pulled the deal, citing the current weak market conditions and volatility in the international capital markets.
'The company wouldn't want to sell cheap as it is cash-rich,' a source said.
'The institutional book was well covered by more than 60 investors, most of them are good quality accounts.'
It would 'attempt to come back to the market if investors turn more positive to shipping offerings', the source added.
Cazenove was the sole global coordinator of the offering.