Star BofA Merrill Lynch analyst sacked after Hong Kong IPO is pulled
Top-rated researcher at Bank of America Merrill Lynch asked firm eyeing US$150m share offer 'challenging' questions on profitability
A top-rated analyst has been axed by Bank of America Merrill Lynch from its Hong Kong health care and pharmaceuticals research team after a US$150 million share deal the bank was working on stalled.
Tong Shaojing told the he was fired from his job within days of a proposed Hong Kong listing of shares in the mainland-based Triplex Biosciences being put on hold.
"I can confirm I was fired by the bank and HR told me it was not because of any problem related to my performance," said Tong, who was part of the team working on the Triplex deal.
Sources with direct knowledge of the matter say Tong, who was regularly ranked among the top three China-focused analysts in his sector, was let go on March 19 after Triplex and its bankers decided the previous weekend to hold off on the listing. The original plan had been to start marketing to investors in the week of March 17, they said.
The sequence of events has puzzled peers at rival banks and sparked much debate among Tong's former colleagues at Bank of America Merrill Lynch.
It is rare for a major investment bank to lay off a top-ranked analyst, in particular when the analyst is involved in a transaction. Market participants say it is rarer still when a deal is dormant, not dead.
Triplex has told Bank of America Merrill Lynch and other banks working on the sale that it wants to revive its initial public offering in Hong Kong later this year, sources with direct knowledge of the matter said, on condition of anonymity.
