Hong Kong's Swire scraps US$2.7 bil property IPO, say sources

HONG KONG: Swire Properties, the property unit of Swire Pacific, has pulled its plans to raise up to US$2.7 billion (RM8.81 billion) through a Hong Kong initial public offering, sources said on Thursday, May 6, amid a broad market sell-off.

Hong Kong-based Swire Properties, one of the leading property companies in Asia, originally planned to sell 907 million shares, or 13.8% of its enlarged share capital, at a price range indicated between HK$20.75 (RM8.71) and HK$22.90 per share.

Sources with direct knowledge of the matter said that Swire elected to pull the offering amid weakened demand from the market sell off. A company announcement is expected soon.

Trading in shares of Swire Pacific was suspended on Thursday afternoon. The company was not immediately available for comment.

Swire Pacific shares fell 2.8% to end the morning session at HK$81.05 before trading was suspended, underperforming the broader market, which was down 1.1% before the lunch break.