Huationg Halts Hong Kong IPO Amid Global Economic Uncertainties
The civil engineering provider Huationg Global Ltd. has put its dual listing in Hong Kong on hold amid the current worldwide economic uncertainty.
The Catalist-listed company has not filed an application on the Hong Kong Stock Exchange for the listing of its shares, but the expenses to its proposed IPO in 2018 and 2019 amounted to approximately $724,000, according to Huationg responses to shareholder's questions ahead of its annual general meeting on June 19.
Currently, Huationg does not have a fixed dividend policy and said that it could not guarantee that dividends would be paid in the future. It added that dividend declarations will depend on conditions including its earnings, financial position, capital requirements, and general business performance.
Shareholders also noted a "very large discount" to Huationg's net assets value at 49 Singapore cents per share. It responded, "We recognize that this may be due to a gap between our share price and the NAV due to prevailing market conditions and the lack of trading liquidity which may not reflect the true value of our share price."
Based in Singapore, along with civil engineering services, Huationg provides inland logistics support and the sale of construction materials. According to Huationg, it has global projects in Indonesia, Myanmar, and China.
The company plans to engage with shareholders on a "regular basis" and provide continual updates on performance. It will also explore complementary business segments to improve value for its shareholders.
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