Graff Diamonds postpones $1bn Hong Kong float

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Lack of order interest and "adverse market conditions".

Graff Diamonds yesterday announced that it is postponing its stock market flotation in Hong Kong after the float struggled to draw investor interest and orders. 

In a statement released last night the diamond specialist said that the delay on the IPO listing was due to "adverse market conditions".

The float is said to have struggled to attract sufficient orders, after it announced that it would offer $1 billion (£645m) shares on the stock market. The fact the company had chosen Hong Kong for the float was also said to have been a bitter pill for London where the company is based.

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A further statement from the brand said it "enjoyed high quality engagement on its business and strategy from a very broad range of prospective investors, however consistently declining stock markets proved to be a significant barrier to executing the transaction at this time".

Graff had been due to price its IPO on Friday and was set to list next week, which could have made it Asia’s biggest completed flotation so far this year.

The firm plans to continue to grow its business in Asia, however, despite its IPO challenges and is said to be continuing its drive of new store openings.

News recently came through that Graff Diamonds relies on just 20 clients for 44% of its revenue, something that may have also spooked potential investors. 

 

 

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