XCMG Construction Machinery aborts Hong Kong share sale

This as underwriters backed out of commitments to buy any unsold stock.

A Bloomberg report said, “XCMG pulled the sale after some underwriters backed out of an agreement to purchase any stock the company failed to sell, a commitment known as hard underwriting.”

A source, according to the report, said bankers on the deal may meet to try to restructure the offering.

In a statement in January XCMG said it planned to sell as much as a 20 percent stake in Hong Kong.

View the report here.