China's Xiashun Aluminum Foil Postpones Hong Kong IPO to Early 2008 - IFR Asia

China's biggest maker of aluminum foil, Xiashun Aluminum Foil, has postponed its initial public offering in Hong Kong to early 2008 because the stock market has slumped, Thomson Financial unit IFR Asia said Tuesday.

Xiashun plans to sell 500 million shares at 3.10-4.25 Hong Kong dollars each, raising as much as 2.13 billion dollars, IFR said.

"The abundant supply of large IPOs had made medium- and small-size deals uneasy to sell through," it said.

JP Morgan and UBS are managing the offering.

The Hang Seng Index has fallen nearly 10 percent from its Oct 30 peak of 31,958.41 points because investors have been spooked by heavy losses incurred by large financial institutions from their exposure to the subprime mortgage market.

Vietnamese motorcycle maker Nor Offshore has also postponed its 1 billion dollar Hong Kong IPO, but not because of difficult market conditions. The company must put additional information in its prospectus and still plans to list within the year, IFR said.

Other IPOs are proceeding as scheduled, including Sunshine Paper's, Anton Oilfield's, BYD Electronic's and Pacific Online's, IFR said.

Two further Hong Kong listings are planned, by China National Materials and PCD Stores.

Last month, shares of Sinotruck (Hong Kong) and Sinotrans Shipping fell on their debut in Hong Kong, prompting talk that the IPO frenzy has fizzled out.

Investors will now closely watch the Hong Kong debut Friday of China Railways, Asia's biggest contractor. China Railway rose nearly 70 percent on its Shanghai debut yesterday.

But its debut was not as spectacular as PetroChina's last month. Shares of PetroChina, Asia's biggest oil company, soared 163 percent on their first day of trading in Shanghai.

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