Tianjin Port Development Holdings, an operator of China's fifth-busiest port, has failed to push through a Hong Kong IPO worth up to US$100 million in its second attempt at a stock sale, two sources close to the deal said.
It was unclear why regulators rejected Thursday the company's planned initial public offering (IPO), but sources familiar with the situation told reporters that Tianjin Port's first effort fell through because of incomplete financial information.
The unit of Chinese property-to-wine conglomerate Tianjin Development Holdings Ltd. failed to get a green light for a listing in November when the Hong Kong stock exchange's listing committee asked for more data.
Ports across China, the world's third-largest trading nation, have enjoyed an unprecedented boom in shipping as the country snaps up natural resources from crude oil to copper and ships everything from shoes to textiles around the globe.
Tianjin Port, beaten to market by rival Xiamen International Port Co. in 2005, had aimed to become the second purely Chinese port to go public and raise cash to fund a capacity expansion.
＾The spin-off is still going on,￣ one source said.
Tianjin Development said its port services business posted an 11 percent increase in turnover in the first of half of 2005 to HK$410 million (US$53 million) and a 42 percent surge in net profit to HK$77.85 million in the same period.