A wave of Chinese companies have halted domestic listing plans, filings show, as the country’s biggest coronavirus outbreak in two years hampered due diligence and information gathering, affecting an estimated $9 billion-plus in fundraising.
Over the past week, 15 companies seeking initial public offerings (IPOs) on Shanghai’s tech-focused STAR Market have suspended applications, almost all citing impact from the epidemic, exchange filings showed. The city started lockdowns on Monday.
In Shenzhen, where officials conducted three rounds of mass testing in March, 67 IPO applicants suspended listing processes this month, citing the need to update disclosure to regulators, according to filings.
These suspensions potentially delayed fundraising worth 60 billion yuan ($9.43 billion), the state Securities Times estimated.
To minimise the impact, the Shanghai Stock Exchange has vowed to maintain a steady operation of capital markets during the “special” virus control period.
The bourse said on Sunday it would continue to vet share sale plans by STAR Market candidates and strengthen online communications with issuers and underwriters.
- Reuters with additional editing by Jim Pollard