Closed-ended investment fund Welkin China Private Equity has cancelled its London float one month after issuing an IPO prospectus.
The China-focused investment fund was hoping to raise US$300mln through a premium listing in order to seek out new growth investments and strategic deals.
But plans are now paused due to “increased levels of macroeconomic uncertainty and market volatility”.
Intended fund manager Welkin Capital Management said all funds committed to the vehicle are to be returned, and it will reassess the IPO “once macroeconomic conditions have improved”.
The cancellation comes as little surprise given hostile market conditions - London’s main market hosted just six IPOs in the first half of 2022, while AIM listings are at 13-year lows.
Another prominent China-based company, Sinopec, has applied to delist its American Depositary Shares from the London Stock Exchange.
Welkin Capital’s portfolio includes Tuhu, a Chinese online car-services platform backed by Tencent Holdings (HKG:0700, OTC:TCEHY)
Tuhu is currently exploring an IPO on the Hong Kong Stock Exchange.