Clothing IPO Teeters After Dropping Price

An IPO for Brazil’s Le Lis Blanc, which was scheduled to price yesterday, teetered on its way to public markets. The private equity-backed retailer and manufacturer dropped the price range to BRL7.50-BRL9.50 from BRL10.50-BRL12.50, say people familiar with the transaction. “The bankers are doing a great job here, but the reality is that the new issue premium is brutal out there,” said an ECM chief away from the deal. Le Lis Blanc is heard trying to price its deal today. The offering, already flagged by investors as vulnerable given the small size of its initially proposed IPO, will raise a maximum of BRL252m – by all measures challenging, especially given investors dislike for illiquidity. People close to the company suggested earlier this year that the timing of the offering was being driven by Artesia, the financial sponsor, which was seeking to capitalize Le Lis Blanc. Merrill and Morgan Stanley have the books.