Sun Art listing delayed due to prospectus oversight
The Hong Kong listing of China’s largest supermarket operator Sun Art Retail Group has been postponed nearly two weeks due to an error in its IPO prospectus. The company, which recently priced its offering at the top end of the range to raise $1.1 billion, apparently overstated its historical earnings per share (EPS).
Sun Art negated to change earnings per share (EPS) figures on its prospectus following a stock split late last month. This resulted in higher EPS given that the company's net profit was divided by fewer shares than were actually outstanding. The oversight prompted regulators to delay Sun Art's listing from today to July 27, and as part of the postponement, investors have reportedly been given six days to reconsider their bids.
Sovereign wealth fund the Government of Singapore Investment Corp. (GIC) and Malaysia's state-run Khazanah are cornerstone investors in the offering, each taking $40 million worth of shares. General Atlantic and Hillhouse Capital Management invested $70 million apiece, while Tiger Global Management, Owl Creek Asset Management, Bain affiliate Arisaig Partners and Carmignac Gestion each committed $40 million.
It was previously reported that, of listings in Hong Kong so far this year that have brought in more than $1 billion, Sun Art is only the second - after MGM China - to price at the top of expectations. A number of offerings have been delayed or cancelled due to poor market conditions.
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