The overwhelming vote in Greece on Sunday against the conditions of a rescue package from creditors and fears that China's equity rout will spread across Asia have prompted investors to stay on the sidelines, turning their backs on IPOs. Manulife us reit pulled its S$569m (U5$426m) Singapore Exchange IPO last week because of volatile global equity capital market conditions. "In light of increased volatility in the equity capital market, the IPO of Manulife US REIT has been delayed. Depending upon market conditions, the IPO is expected to proceed at a later date," Manulife said in a statement. Books were scheduled to close on July 3 but demand did not materialise after the Greek default. A banker working on the IPO said the issue could have gone through with support from private banking clients, but the cornerstone investors and the issuer were worried that the shares may not trade strongly enough on listing and opted not to launch. "Looking back, it seemed the right thing to do as most shares have listed weak," said the banker.
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