Accounting issues put ITAT float on hold
Chinese retailer ITAT’s $1bn IPO has been put on hold amid allegations of improper accounting
Chinese retailer ITAT Group has stalled plans to raise $1bn through an
initial public offering on the Hong Kong stock exchange amid allegations of
improper accounting.
Banking sources familiar with the issue told The Wall Street Journal
allegations included inflating sales figures.
Bankers involved in preparing ITAT’s IPO noted a discrepancy between the
company’s impressive sales figures and the lack of activity seen by analysts
visiting some of its stores.
Accounting firm KPMG is investigating claims made in an anonymous letter to
the stock exchange that the group misreported its earnings.
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The Wall Street Journal story