Graff Diamonds pulls Hong Kong IPO

Stat of the day: 4 - the number of IPOs that have been called off in Asia this week.

by
Last Updated: 09 Oct 2013
As stock markets tumble, companies are rapidly pulling the plug on Asian IPOs.  London luxury jeweller Graff Diamonds is the latest to pull its $1bn Hong Kong IPO, after investors got the jitters about the ongoing euro crisis and an economic slowdown in China.

A slump in Asian equities over the last week has already derailed three major IPOs which were aiming to raise up to $1.37bn collectively: two in Hong Kong and one in Singapore.

The value of IPOs pulled in Asia, excluding Japan, has jumped to $7.7bn so far in 2012 from 46 planned offerings, according to Thomson Reuters. Hong Kong accounted for most of the scrapped deals. Rival Tiffany & Co recently added to the pressure, cutting its sales forecast last week and blaming slower demand in China. Is the Asian bubble about to burst?

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