China Yongda Auto calls off Hong Kong IPO

China Yongda Automobile Services Holdings will withdraw its US$433 million IPO just days before it was expected to list in Hong Kong, The Wall Street Journal reported. Yongda, a dealer that sells Toyotas (TM.NYSE, 7203.TYO, TOM.FRA, TOM.ETR) and BMWs (BMW.FRA, BMW.ETR) in China, cited weak equity markets for the decision and said it may revisit the IPO if conditions improve. The company was scheduled to price its shares Monday and list on Wednesday, but had to extend its share sale last week by five days. Other offerings have been scuppered over negative market conditions, including the sovereign debt crisis in Europe, that may make investors hesitant to buy into an IPO. The Yongda IPO is the largest to be scrapped in Asia so far this year, edging out a US$397 million offering by M&L Hospitality Trusts in Singapore that was abandoned in April. Other companies are proceeding with plans to list in Hong Kong this year, including China Nonferrous Mining, Inner Mongolia Yitai Coal (900948.SHA) and Graff Diamonds.