The scramble to withdraw IPO applications raises questions over the quality of China’s IPOs and robustness of due diligence done by their underwriters
A GROWING number of Chinese tech start-ups are cancelling plans to list on Nasdaq-styled markets at home with some eyeing Hong Kong share sales instead, as regulators tighten scrutiny of initial public offering (IPO) applicants after the halting of Ant Group’s (pic) US$37bil (RM153bil) float.
Over 100 companies have voluntarily withdrawn applications to list on Shanghai’s STAR Market and Shenzhen’s ChiNext since Ant’s termination of its IPO in November, according to Reuters review of exchange filings.The unprecedented withdrawals come against the backdrop of sharply intensified grilling of listing prospects by regulators, leading to IPO delays, outright rejection or even penalties, said bankers and company executives.
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