HONG KONG (Bloomberg) -- Nexteer Automotive Group Ltd., the U.S. auto-parts maker controlled by China’s biggest aerospace company, postponed an initial public offering in Hong Kong, two people with knowledge of the matter told Bloomberg.
The company, based in Saginaw, Mich., decided not to set a final price for the offering today as market volatility undermined investor demand for its shares, said the people, who asked not to be identified because the information is private.
Nexteer had planned to seek as much as $325 million from the IPO, according to a prospectus for the deal.
Companies have delayed more than $2 billion of IPOs in Hong Kong in June, where the benchmark Hang Seng Index is heading for its worst monthly performance in over a year.
An external spokeswoman for Nexteer declined to comment on the delay. BOC International Holdings Ltd. and JPMorgan Chase & Co. arranged the share sale, the prospectus showed.
Reports about the planned IPO first emerged in March. At that time, Nexteer was said to be planning to raise $500 million. Last month reports put the amount at $400 million, then down to $325 million earlier this month.
Nexteer was originally part of Delphi Corp.'s spinoff from GM in 1999, but eventually went back to former parent company General Motors after Delphi went into Chapter 11 bankruptcy.
Then in 2010, GM sold it to Pacific Century Motors, a company backed by the Beijing municipal government. Aviation Industry Corp. of China., the country's biggest aerospace company, now owns 51 percent of Nexteer through unit AVIC Automobile Industry Holding Co., according to the Chinese company's Web site.