Sound Global Ltd. postponed a dual listing in Hong Kong and the sale of new stock as the plan couldn’t be undertaken “on acceptable terms,” calling off the planned move less than a week after issuing a prospectus.
“The company has determined that the global offering cannot be concluded,” Sound Global said in a statement to the Singapore exchange today. The provider of wastewater-treatment services in China said on June 21 it planned to sell 261 million shares at as much as HK$5.60, with trade set to start on July 6.
Concerns that Europe’s sovereign-debt crisis will hurt the global economic recovery have dragged the MSCI World Index 7.6 percent lower this year, forcing companies from the U.S. to Hong Kong to shelve share-sale plans. About 47 companies have cancelled offerings in the past three months globally, compared with 27 a year ago, according to Bloomberg data.
“Market sentiment is not very good, so the company decided to cancel,” Cherry Qiu, an external spokeswoman for Sound Global in Hong Kong, said by phone. The sale may be held at a later date, the statement said, without being more precise. The company is being advised by Morgan Stanley.
Sound Global stock in Singapore, where the company used to trade as Epure International Ltd., has surged 85 percent in the past year compared with the 24 percent gain for the benchmark Straits Times Index. The shares, suspended from trading today, last traded at 85 Singapore cents yesterday, valuing the company at S$1.1 billion ($785 million).
Last month, billionaire Ron Burkle’s Americold Realty Trust canceled this year’s largest U.S. IPO and Swire Properties Ltd., landlord to Time Warner Inc. in Hong Kong, also shelved its plan to raise as much as HK$20.8 billion ($2.7 billion).
--Editor: Jake Lloyd-Smith