Guangzhou Auto postpones Shanghai IPO for 3 months

Guangzhou Automotive Industry Group Co Ltd (GAIG), one of China's top automakers, has postponed its Shanghai IPO for three months, the South China Morning Post cited unnamed sources as saying.

The weak market sentiment and a complicated internal restructuring are deemed as the main reasons for the delay.

GAIG aims to raise about 4 billion yuan ($573 million) from the mainland offering to fund research and development of upscale sedans, said sources.

In 2007, GAIG's total sales revenue reached RMB 100 billion, and its net profit reached 10 billion yuan.