Affected by the recent lackluster performance of the stock market, Hong Kong Airlines has reportedly shelved its plan to go public in Hong Kong in Q4 of this year.
The IPO is said to have been under planning for more than a year since early 2014. It drew market attention as it would have been the first stock listed in two markets and two currencies. The carrier planned to complete the IPO in Q1 this year, but the plan to list in dual markets and currencies was later scuttled, and the entire plan is now derailed by uncertainties in the market.
Hong Kong Airlines is the first suspended listing in the sliding Hong Kong stock market, which so far has been the market with the highest number of IPOs. Dow Jones reported that the Hang Seng Index has fallen 19% in the past three months, along with the weak mainland markets. China’s stock market has lost more than half of the market value since mid June amid concerns of economic slowdown in China.
It was reported that more Hong Kong companies are delaying IPO plans to end of the year, and may even hold IPO plans if the market stays weak. Sources said Heng Tai Securities, which has been itching to go public, has also halted its IPO plan due to lukewarm reception, but it is said to be waiting for the right moment to revive the plan.
Hong Kong Airlines operates flights to Southeast Asia destinations such as Phuket and other Thai cities, as well as some first-tier cities in China. The carrier is controlled by HNA Group, which also owns hotels, such as Tengla Hotel, and operate container leasing. (Translation by Shuk)
