China’s bullet trains have come to a screeching halt … as have the IPO dreams hitched to them. Beijing-Shanghai High-Speed Railway, which operates the high-speed rail system, has yanked its plans for a $5 bn IPO. Last month’s train crash obviously had something to do with it, along with a 54-train recall and a 25 per cent cut in service. The company was going to go public in Hong Kong and Shanghai, possibly as early as next year.
In addition to the fallout from the wreck itself, the accident has made regulatory approvals and a ‘planned restructuring ahead of the IPO’ more difficult, according to website euronews.
The underwriters had already been chosen: BOC International, CICC, JP Morgan and Macquarie (for Hong Kong) and CICC for Shanghai.