São Paulo Pulls Nossa Caixa Share Sale

The state of São Paulo has decided to pull a planned secondary offering of shares in state-run Banco Nossa Caixa. The offering of 18.8 million common shares was due to raise the state around $435 million and would have seen it reduce its stake in the Bank from just over 70% to just under 54%. The sale would have increased Nossa Caixa’s free float from around 29% up to 46%. UBS was coordinating the sale. Last October, São Paulo raised $378 million by selling 26.8 million common shares of the Bank, representing 25% of its share capital, in an initial public offering. It became the first financial institution to list on the Novo Mercado section of Bovespa.