(Bloomberg) — Chinese podcasting startup Ximalaya Inc., in a sudden change of heart amid market volatility, is pushing back the launch of its planned initial public offering in Hong Kong, people familiar with the matter said.
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Bloomberg News previously reported that the Shanghai-based company had been in talks with potential Cornerstone investors in recent days and was looking to begin taking orders as soon as next week. People said that now it has been decided to stop it till September at the earliest.
Ximalaya met with lukewarm demand during initial talks with potential investors, one of the people said, asking not to be identified because the information is private. Another person said it ultimately determined that it would be too difficult to close this month’s offering given the disagreement over valuations amid market turmoil.
People said the company, which was considering seeking less than $100 million, made the final decision to close in the past 24 hours. Ximalaya hasn’t formally set a new timeline, and details of the offering may still change, the people said. A representative for Ximalaya declined to comment.
Hong Kong’s IPO market has seen its sharpest boom in a decade, with inflation concerns and the war in Ukraine contributing to market volatility. According to data compiled by Bloomberg, companies have raised about $2.4 billion through IPOs so far this year, which is only a fraction of the $26.2 billion raised during the same period in 2021.
This month, some companies including logistics startup GogoX Holdings Ltd and battery materials supplier Tianqi Lithium Corp are set to avert a slowdown and move forward with their Hong Kong listing plans.
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Ximalaya Tencent Holdings Ltd., Baidu Inc. and Sony Music Entertainment as backers, shows a preliminary prospectus. The app-based online audio platform on Tuesday launched the first official audiobook edition of the Harry Potter series in Chinese, according to a statement from Pottermore Publishing.
The company first filed for Hong Kong IPO in 2021. It had previously abandoned plans to list in New York as Chinese regulators intensified investigations on domestic firms appearing on US exchanges over national security concerns.
Goldman Sachs Group Inc., Morgan Stanley and China International Capital Corp., Zimalaya’s Hong Kong offering, are joint sponsors of the prospectus show.
(Update with Harry Potter audiobook in seventh paragraph.)
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