Xiao Nan Guo cancels Hong Kong IPO

The Chinese restaurants operator cited recent excessive market volatility as the reason for pulling out.

A Bloomberg report said, “The company made the decision in the interests of investors after consulting the sale’s sponsors, according to a Hong Kong stock exchange filing yesterday. Xiao Nan Guo, based in Shanghai, said it will refund deposit money.”

The chain, according to the report, planned to sell 335 million shares to fund new restaurants and repay bank loans.

“As of September 19, investors had lost money on 37 of the 48 companies that started trading this year, and equity sales are set for the slowest third quarter since 2008,” added the report.

View the report here.