Shares of ENN ENERGY (HKEX: 02688) fell nearly 6%. At the time of writing, the stock was down 5.73%, trading at HK$46.06 with a turnover of HK$516 million.

The decline follows an announcement from its parent company, Enn Natural Gas Co.,Ltd., on the evening of June 12. The parent firm stated it has decided to terminate the process of taking ENN ENERGY private through a wholly-owned subsidiary and subsequently listing via introduction on the main board of the Hong Kong Stock Exchange.

Analysts at Citi noted the cancellation of the take-private plan by the parent company and consequently downgraded their rating on ENN ENERGY to "Neutral". The transaction had been awaiting approval from the China Securities Regulatory Commission for nearly a year, and the timeline for fulfilling all necessary conditions remained unclear.

From a fundamental perspective, the outlook for ENN ENERGY appears challenging. The company faces weak growth in retail natural gas sales, a decline in new household customer additions, and a decrease in integrated energy sales.