SAO PAULO: Brazilian waste management company Ambipar Environmental ESG Participacoes SA said late on Thursday it decided to call off its initial public offering (IPO) due to unfavorable market conditions.
The company was planning to raise roughly 3 billion reais ($543.66 million) in the IPO by selling new shares at between 15.50 reais and 20.50 reais each. The pricing was expected to happen on Thursday, in an offer managed by Bradesco BBI, Santander Brasil and UBS BB.
Environmental ESG Participacoes SA, a unit of Brazil's environmental and emergency response company Ambipar Participacoes e Empreendimentos SA, said it has called on Brazilian securities watchdog CVM to halt its IPO request for up to 60 days from Oct. 7.
The proceeds of the IPO were supposed to be used for acquisitions and the optimization of the company's capital structure, including a working capital reinforcement, according to its preliminary prospectus.
Gym chain Bluefit and pharma company Althaia also canceled their IPOs in September due to poor appetite among investors, while cement maker Intercement said on Friday it will not file for an expected IPO in the coming months.
President Jair Bolsonaro's recent confrontation with Brazil's Supreme Court amid an economic crisis has raised fears over the country's reform process, threatening to poison the environment for more than 20 IPOs-in-waiting, as Reuters reported earlier.
On Friday, energy trading company Comerc plans to price its offering. Eight asset managers have committed to anchor Comerc's IPO and acquire 1.2 billion reais ($227 million) in the offering.