A prospective $114 million to $149 million IPO for Shanghai Forte was withdrawn by lead manager HSBC this Sunday, the very day the 455.9 million share deal was scheduled to price. In a statement to the Stock Exchange of Hong Kong, the company cited weak market conditions as the reason for the cancellation, although investors say this was compounded by an aggressive valuation.
At HK$1.95 to HK$2.55 per share, the company was marketed on a 15% to 30% discount to NAV, or 1.3 times to 1.7 times price to book. Comparables, by contrast, currently trade as low as 0.4 times price to book and on 60% to 70% discounts to...
