Brazil Oil IPO Withdrawn

PetroReconcavo, a Brazilian E&P company with onshore wells in the state of Bahia, has put off plans for an IPO, according to the CVM. The issuers’ registration, filed in May, has been withdrawn. It had planned to sell both primary and secondary shares, but had not given details as to the size. US-based E&P operation PetroSantander owns 50% of PetroReconcavo, with another 25% held by Brazilian E&P company Perbras, a founder along with PetroSantander, and 25% by a PE fund owned by Brazil’s Banco Opportunity. Reconcavo was looking for funds to spend in new auctions for oil field concessions as well as possible acquisitions. BTG Pactual and Credit Suisse had been hired to manage the sale. Brazilians – in oil or any other sector – have been unable to IPO since July, and many who had entered the queue this year have dropped out. If better market conditions return, many are expected to re-file.