"The company has decided to wait for a better market," a source close to the deal said.
The Ningbo-based textile firm cut short its bookbuilding, which was due to run from October 12 to October 31, despite generating enough institutional orders.
But the sources said many of the orders were placed near the bottom of an expected range, with the Hong Kong stock market having lost over 400 points, or about 2.8 percent, since October 12 due to fears over rising US interest rates and energy prices.
Shenzhou's deal, arranged by BNP Paribas Peregrine, had been set for a trading debut on November 7. Privately ran Shenzhou planned to offer 300 million shares at between HK$2.63 and HK$2.99, representing 9.51 to 10.82 times 2005 earnings.