Daikiya, facing losses, puts off trading debut

Japanese restaurant operator Daikiya, which was originally scheduled to begin trading on Friday, suspended its initial public offering in the Hong Kong stock market due to several factors including the prevailing market condition.

The company planned to raise HK$200 million, after setting the indicative price range from HK$1.6 to HK$2 per share.

Daikiya warned in its prospectus that net profit for the year ending March 31 could decline significantly mainly due to the closure of Daikiya restaurant in Causeway Bay, upfront costs for its new restaurant in Sha Tin, as well as the drop in the number of diners due to the unrest cince June last year.