IPO freeze puts underwriters in major quandary

China's sudden halt to a frenzy of initial public offerings came at just the wrong time for underwriters Everbright Securities Co, Guotai Junan Securities Co and China Merchants Securities Co.

The trio are the firms with the largest number of IPOs in limbo - approved by regulators but yet to be completed - after the government imposed an indefinite suspension this month, data compiled by Bloomberg show. Each has three on hold.

With 38 companies' share sales blocked before the underwriters could get them out of the door, as much as $386 million in fees has evaporated for now, based on averages for deals in the first six months.