Perenco Petroleo e Gas, the Brazilian subsidiary of Anglo-French oil producer Perenco, asked regulators on Friday to suspend plans to sell shares in the domestic equity market for up to 60 days, according to a securities filing. The company, which explores for and plans to produce oil and gas in the Espirito Santo basin, was planning to raise about 1 billion reais ($645 million) in an initial public offering that was slated to price later on Friday.
The company said the decision was due to deteriorating market conditions, without elaborating. The company was created in 2007 as a local subsidiary of the Anglo-French Perenco but has still not produced revenue. The issuance is being co-ordinated by Itau BBA, BTG Pactual and Morgan Stanley. The Perenco IPO is the latest in a series of setbacks for Brazilian companies, which have seen their share offerings either priced below expectations or suspended amid worries that Brazil's economy is showing signs of a bubble.
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