Shenzhen-based USB solutions developer and supplier Netac Technology (300042.SZ) has submitted documents to the China Securities Regulatory Commission (CSRC) requesting that Beijing-based IT manufacturer Watertek Information & Technology's IPO be put on hold. Netac filed suit against Watertek and other companies on May 15, alleging infringement on its patents and seeking RMB 60 mln in damages. Netac's lawsuit was accepted for review on May 15. Watertek has denied the claims.

As part of preparations for its initial public offering, Watertek had selected May 18 as the date for its preliminary inquiry, but later said it would postpone until May 25 owing to Netac's lawsuit. The product concerned, of which Netac is demanding that Watertek halt sales, has generated sales of RMB 37.58 mln, RMB 84.15 mln, and RMB 124 mln for Watertek over the past three years, accounting for 36.18%, 46%, and 41.5% of operating revenues for those respective years.

Source:marbridgeconsulting