It's not just India and USA where the IPO's are being cancelled. It's also happening across the globe.
The Evergrande IPO (read review of Evergrande IPO) became the latest victim of the market volatility and market sentiments and was cancelled from making a debut in the HongKong Stock exchange.
The $2.1bn Hong Kong IPO, which was supposed to hit the markets very soon, was finally called off. The owner of the Evergrande Constructions, was supposed to list his name among the world's richest individuals had the IPO been listed at his expected price. but unfortuantely, things work randomly and the Evergrande IPO came to a stand still and was finally cancelled.
The market in Hong Kong has plunged in the last few weeks following a string of bad news from the US, including the collapse of Bear Stearns. The benchmark Hang Seng Index has dropped 24.1 per cent since the start of the year.
Almost 8-9 companies have cancelled or delayed their IPO listing this year in HongKong, given the bad news and market conditions in HK as well as in US. The company, which began bookbuilding on March 6, is understood to have decided to delay the IPO after failing to receive enough orders from retail and institutional investors by the time subscriptions closed on Wednesday night. This is in spite of the developer extending the subscription period of its retail offering by one day.
So for the moment, there is no respite for the IPO's waiting to come into the market.
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