Canceled Real-Estate Deal Throws a Wrench in Brazil’s IPO Rush
(Bloomberg) — In one of the world’s worst hotspots for the coronavirus, a crowded pipeline of initial public offerings got a harsh reality check.
Brazilian builder Direcional scrapped plans Tuesday to list shares of its unit Riva 9, a real-estate developer focused on middle-income housing. The firm cited unfavorable market conditions.
It was a disappointing start to what had promised to be a busy stretch of equity sales in Latin America’s largest economy. Four Brazilian companies are still due to hold IPOs over the next two weeks, according to data compiled by Bloomberg. An education firm, which is going public in the U.S. but has yet to announce a pricing date, could boost the tally to five, the highest number for any fortnight since 2007.
Brazilian issuers are seeking to take advantage of the dissonance that has seen equity markets soaring around the globe amid a global health catastrophe. Money