AAG gets cold feet

Postpones Hong Kong IPO because of challenging market.

Chinese coal-bed methane gas developer AAG Energy Ltd. has put on hold its US$200 million initial public offering in Hong Kong. Sources said the company cited the challenging market for the decision.

AAG is also said to be will considering listing once the market becomes more stable. AAG originally planned to start accepting orders yesterday and to list on the Hong Kong stock exchange Dec. 20. It has been determining investor interest in a pre-marketing process since Nov. 28.

The postponement comes as shares of Zhengzhou Coal Mining Machinery Group Companydove 8.8% to HK$9.47 in the company's Hong Kong debut after underwriters of the US$296 million offering were left holding 12.5% of unsold shares due to weak demand.