May 30, 2012 / 10:33 PM / 6 years ago

Graff Diamonds pulls Hong Kong IPO

May 31 (Reuters) - London luxury jeweller Graff Diamonds has pulled its planned $1 billion initial public offer on the Hong Kong stock exchange due to adverse market conditions, a spokeswoman said on Thursday.

Famous for its giant and rare gems, Graff had been scheduled this week to price what was set to be Asia’s biggest IPO this year, but it withdrew the offering at the last minute on Wednesday as global markets tumbled.

Some analysts and fund managers had already begun questioning the company’s valuation before Wednesday’s global market sell-off, citing a slowdown in luxury spending in China.

The benchmark Hang Seng index has fallen heavily since Graff started meeting investors, with stocks in the luxury goods sector hit hard.

On Wednesday, U.S. stocks and pan-European and global share indices all lost more than 1 percent as fears over the euro zone crisis gripped investors.

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