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UPDATE 1-Brazil's Vix cancels IPO plan due to unfavorable market
January 15, 2013 / 7:41 PM / 5 years ago

UPDATE 1-Brazil's Vix cancels IPO plan due to unfavorable market

* Logistics company had filed to raise about $300 mln

* Drought of IPOs comes amid wariness about Brazil

SAO PAULO, Jan 15 (Reuters) - Brazilian transport logistics company Vix Logística SA canceled plans to list its shares on the São Paulo Stock Exchange, citing “unfavorable” market conditions at a time when many investors are wary of Brazil.

Reuters reported on Friday that the company had decided to cancel the initial public offering, which was expected to fetch around $300 million. The news dampened hopes that Brazil’s IPO market might quickly rebound after a down 2012.

Appetite for Brazilian assets has diminished in recent years as the economy struggles with slow growth and waning confidence in the left-leaning government of President Dilma Rousseff.

Vix said in a statement it would “continue monitoring market conditions and evaluating the best way and the best moment to access capital markets.”

The company had hired the investment banking units of Itau Unibanco Holding SA, BTG Pactual Group, Credit Suisse Group, Banco do Brasil SA and Banco Bradesco SA to handle the IPO.

Seen for most of the last decade as a symbol of Brazil’s economic rise, IPOs have languished recently as prices sank for many names that went public.

Last year, IPO activity in Brazil fell to the lowest level since 2005: just four share offerings raised about 5.1 billion reais ($2.5 billion), Thomson Reuters data showed. In 2007, a record year for the IPO market, companies raised 55.7 billion reais from share sales in 64 transactions, data showed.

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