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]