Chinese steel website Zhaogang.com scraps dual-class share IPO plan

It is pursuing a regular IPO instead.

Bloomberg reports that Chinese steel trading website Zhaogang.com Inc is dropping plans to pursue a dual-class share structure in its Hong Kong IPO as it aims to proceed with a regular share sale instead.

The Shanghai-based firm is said to be doing away with the earlier arrangement so that it will have more flexibility on the valuation it uses to approach investors. Revised rules by the Hong Kong bourse require companies aiming to conduct an IPO with a weighted voting rights (WVR) structure to achieve a market capitalisation of at least $10b (US$1.3b) at the time of the listing.

Also read: Hong Kong Exchange delays WVR plans

Zhaogang.com is one of the four firms who have so far applied for an IPO under the new bourse rules allowing firms with WVR structures to list after sweeping reforms to the listing requirements last April kicked into effect.

The other three firms are smartphone maker Xiaomi and food and delivery firm Meituan Dianping who have already raised money from the structure whilst cryptocurrency miner Bitmain has filed a listing application in September under the revised rules.

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