Nexteer postponed Hong Kong IPO on weak share demand

Article by Anita Panait, on June 27, 2013

Nexteer Automotive Group Ltd. has postponed an initial public offering in Hong Kong as market volatility weakened investor demand for its shares, two sources privy the matter told Bloomberg. Weaker demand for Nexteer's shares has forced the company to decide not to set a final price for the offering. Nexteer had planned to raise up to $325 million from the IPO, according to a prospectus for the transaction, which also says that BOC International Holdings Ltd. and JPMorgan Chase & Co. arranged the share sale. Reports on Nexteer's planned IPO first came out in March 2013, when the company was reported to be seeking $500 million.

In May, reports emerged that Nexteer was seeking $400 million. The amount went down to $325 million earlier this month. Nexteer was part of Delphi Corp.'s spinoff from GM in 1999, but returned to General Motors after Delphi filed for Chapter 11 bankruptcy.

GM sold Nexteer to Pacific Century Motors in 2010. Aviation Industry Corp. of China now owns 51 percent of Nexteer through unit AVIC Automobile Industry Holding Co. Companies have postponed over $2 billion of IPOs in Hong Kong in June 2013, as benchmark Hang Seng Index is seen to post its worst monthly performance in over a year. [source: automotive news - sub. required]

Topics: ipo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Things are looking good at Rolls-Royce Motor Cars as the British luxury carmaker impressed by posting a six-percent jump in deliveries in 2016. Rolls-Royce’s 2016 deliveries of 4,011 units in...
by - January 15, 2017
British luxury sports car maker Jaguar is introducing a bevy of subtle updates to the 2018 Jaguar F-Type Facelift. However, these updates are so subtle that they are barely noticeable...
by - January 14, 2017
As far as Automobili Lamborghini S.p.A. is concerned, 2016 was a very fruitful year. This is all due to the fact that the luxury sports carmaker has delivered the most...
by - January 14, 2017
Earlier reports revealed that Infiniti was at the point of considering an electric car for the future. Prior to this, the company has in fact unveiled two concepts already--- the...
by - January 13, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries