China Tech News reports:

Chinese online communications service provider Net263 Network Communication Co., Ltd. announced that it had not passed the review of the Chinese securities regulatory department for implementing an initial public offering.

Last week, Net263 Network Communication Co., Ltd had its IPO statement published, which showed that the company planned to issue 30 million shares and invest up to RMB730 million in the coming three years on multi-party calling service, email service, virtual calling center construction and regional marketing service center construction. As scheduled, the company’s IPO application was reviewed by the China Securities Regulatory Commission on April 14.

However, Net263 Network Communication Co., Ltd’s application has not been approved. Neither the company nor the China Securities Regulatory Commission has issued statements on the exact reason why the IPO won’t go forward.

Net263 is one of the more venerable elders of China’s internet scene. It was started in 1999 and has been an ISP, email provider, and seller of VOIP-based phone cards. It even makes money, RMB63.45 million last year, according to Shanghai Daily.

Some mining company just got the go-ahead last week to list, so it wouldn’t appear that there are any restrictions on IPO’s as the market sags after a tough first quarter.

One firm bound to be ticked off by this is SAIF Partners, reputed to be the top venture capital firm operating in China. They’re one of Net263’s investors. I’m sure it was a nasty surprise for them.

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