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SINGAPORE, July 3 Maritime Capital Shipping has
shelved a planned Singapore stock market listing, which bankers
said was aiming to raise $300 million, reflecting investors'
reluctance to put new money into dismal markets.
The Hong Kong-based firm, which ships dry bulk commodities,
wanted to sell existing and new shares to raise capital to buy
UBS UBSN.VX was the lead manager for the IPO.
"Asian IPO has almost reached standstill," said Leslie
Phang, the Singapore-based head of investments at the private
client unit of Schroders Plc, which manages $260 billion
"Issuers are unwilling to launch at lowered valuations and
investors are more focused on reducing their equity positions."
In Asia-Pacific excluding Japan 32 companies have withdrawn
plans to raise $18.4 billion from IPOs this year, according
Thomson Reuters data.
Maritime was looking to sell its shares at an indicative
price range of S$1.24 to S$1.46 a share or 7 to 7.8 times 2008
earnings, a banking source told Reuters last month.
But shipping companies are trading at a discount to the
broader market because of concerns about global economic growth
and slower trade.
Neptune Orient Lines (NEPS.SI) trades at almost 8 times its
forecast 2008 earnings, while STX Pan Ocean STXP.SI trades at
5 times earnings, against Singapore's benchmark index .FTSTI
that was trading at 14.5 times earnings, Thomson Reuters data
The withdrawal is also a setback for Singapore's efforts to
attract shipping and offshore oil services companies to its
(Reporting by Saeed Azhar; Editing by Jan Dahinten)