COFCO packaging unit postpones HK listing

Oct. 31, 2008 (China Knowledge) - CPMC Holding Ltd, the packaging unit of China's largest food manufacturer and trader China National Cereals, Oils & Foodstuffs Import and Export Corp (COFCO), has postponed its plan for an initial public offering (IPO) in Hong Kong due to current market volatility, sources reported. 

According to the sources, CPMC Holding has also cut the offering size to RMB 780 million from the previous RMB 1.56 billion.

Earlier this year, COFCO had announced it planned to spin off the unit for a Hong Kong listing by the end of November this year, which was expected to become COFCO Group's third listed unit in Hong Kong after China Agri-Industries Holdings Ltd<606>and China Foods Ltd<506>.

BOC International Asia Limited and China International Corp have been assigned as major underwriters for the sale, according to source familiar with the situation.

In May, COFCO Group Chief Financial Officer Ma Wangjun said the company had no plan for group listing, instead, it was more apt to spin off its specialized subsidiaries for separate listings, adding that COFCO might first let its livestock and packaging businesses go public in the mainland or Hong Kong stock markets, China Knowledge reported earlier.