Graff Diamonds Postpones $1 Billion Hong Kong IPO

Graff Diamonds Corp. (1306) shelved a $1 billion initial public offering in Hong Kong as Europe’s debt turmoil drives first-time stock sales to the lowest level since the collapse of Lehman Brothers Holdings Inc.

Graff, which depends on just 20 customers for almost half its revenue, cited “consistently declining stock markets” in an e-mailed statement. It had sought a valuation of as much as 24 times estimated full-year earnings, a higher multiple than those of luxury-goods companies including Harry Winston Diamond Corp. (HWD) and PPR SA.

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