US$9bil IPO plans stalled amid Covid outbreak

Pause button: Healthcare workers waiting to be taken from a hospital to support a phased lockdown operation in Shanghai. Fifteen companies seeking IPOs on the tech-focused STAR Market have suspended applications. — Bloomberg

SHANGHAI: More Chinese companies are halting domestic listing plans as the country’s biggest coronavirus outbreak in two years hampers due diligence and information gathering, affecting an estimated US$9bil-plus (RM37.84bil) in fundraising.

Over the past week, 15 companies seeking initial public offerings (IPOs) on Shanghai’s tech-focused STAR Market have suspended applications, almost all citing impacts from the epidemic, exchange filings showed. The city started lockdowns on Monday.