SAO PAULO, Sept 25 (Reuters) - Weak investor demand has led Brazil’s Camil Alimentos SA to consider cutting the suggested price range for the food processor’s initial public offering on Tuesday by around 15 percent, two people with knowledge of the plan said.
According to one of the people, who spoke on condition of anonymity, cutting the 10.5 reais-to-12.5 reais suggested price range to somewhere between 9 reais and 11 reais would “be enough to stop the investor pushback.” The sources said that, at the range’s floor, the amount of Camil shares on offer for the IPO remains above firm bids.
Some investors who considered participating in the deal told Reuters last week that the stock looked expensive at the original price range. Camil officials did not immediately comment on the situation. (Reporting by Guillermo Parra-Bernal; Additional reporting by Bruno Federowski in São Paulo; Editing by Paul Simao)