Sept. 22 (Bloomberg) -- Xiao Nan Guo Restaurants Holdings Ltd., an operator of restaurants in China, said it canceled a HK$581 million ($75 million) initial public offering in Hong Kong because of “recent excessive market volatility.”
The company made the decision in the interests of investors after consulting the sale’s sponsors, according to a Hong Kong stock exchange filing yesterday. Xiao Nan Guo, based in Shanghai, said it will refund deposit money.
The chain planned to sell 335 million shares to fund new restaurants and repay bank loans, according to a Sept. 15 offering document. As of Sept. 19, investors had lost money on 37 of the 48 companies that started trading this year, and equity sales are set for the slowest third quarter since 2008. Companies have canceled or delayed more than $14 billion of equity offerings in Hong Kong this year, a record.
XCMG Construction Machinery Co. delayed a Hong Kong stock sale of as much as $1.5 billion, people with knowledge of the matter said last week. Sany Heavy Industry Co. delayed its first share sale in the city for “a few days,” the South China Morning Post newspaper said this week.
--Editors: Romaine Bostick, Cecile Daurat
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