Downsized Brazil IPO Drops Off Radar

Equity markets await final terms on an IPO from Brazilian logistics operator Julio Simoes, with lead managers on the transaction insisting that it would price, though no official word by the close Friday. After a delay from Thursday’s scheduled pricing, the issuer announced it had revised its target for the sale of 55.8m shares to BRL8.50-BRL9.50 from BRL10.75-BRL13.75. At that rate, Julio Simoes could raise BRL499.8m-BRL558.6m, or more if a 8.4m unit greenshoe and 11.2m share hot issue get done. All of Brazil’s 2010 IPO’s have struggled this year, with only 2 of 6 pricing within the target range. If the IPO gets done, proceeds 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.