Published: 2010-06-25 22:33:45

source: http://www.cnbc.com/id/37677950

China's second-largest wind turbine maker, Xinjiang Goldwind Science & Technology, pulled its up-to-$1.2 billion initial public offering, a source said on Sunday, the fifth Hong Kong IPO shelved since last month.

With around $3.8 billion in public offerings pulled from the Hong Kong Stock Exchange in the last few weeks, the dead deals reveal the impact of the sharp drop in China's stock markets and the global fears surrounding the euro zone debt crisis.

AP

The pile of discarded IPOs are crushing investor sentiment ahead of the Agricultural Bank of China's mid-July deal, a deal that could exceed $22 billion and be the largest IPO ever.

The source, who was directly involved with the deal but unauthorized to speak publicly on the matter, said the retail portion of Goldwind's IPO was under-subscribed.

Goldwind originally planned to offer 395.3 billion shares, or 15 percent of the company, with an indicative price range of HK$19.8 to HK$23 per share.

Last month, Russia's Strikeforce Mining & Resources and China Tian Yuan Mining were among the deals yanked from the IPO process, with Swire Pacific's property arm shelving its $2.7 billion IPO plan on May 6.

Goldwind's trading debut was originally set for June 22, under the symbol "2208". CICC, Citigroup [C  3.94    0.16  (+4.23%)] and Credit Suisse [CS  38.85    0.46  (+1.2%)] were handling the deal.

China's Shanghai benchmark stock index is one of the world's worst performers this year, falling 22 percent [CN;SHI  2552.817    -13.928  (-0.54%)] since the government introduced measures to cool property prices in mid-April.

That, coupled with the euro sovereign debt crisis, has weighed on the initial public offering market in Hong Kong, which was home to the most IPOs globally last year.

The Agricultural Bank of China begins its premarketing period on Monday, at a time when the market is digesting yet another pulled IPO.

Goldwind could not immediately be reached for comment.