Simoes Postpones Brazil IPO

Brazil’s Julio Simoes Logistica expects to price its IPO today, according to an official at one of the lead managers, after delaying from Thursday. No reason is given for the delay. The logistics operator aims to sell 55.8m shares at BRL10.75-BRL13.75, plus a possible 8.4m unit greenshoe and 11.2m share hot issue, according to regulatory documents. Proceeds of the IPO will be used for acquisitions, reinforcing working capital and reducing debt, the company says in a preliminary prospectus. Bradesco, Credit Suisse, BTG Pactual and Banco do Brasil are leading the offer, with BESI Brasil, Banco Votorantim and HSBC as co-managers. Investors are pushing back on Brazil IPOs since they are unwilling to pay now for future hypothetical growth. They are also keeping powder dry for jumbos from Petrobras and Banco do Brasil, while some note bitter memories from the last IPO boom of 2007.