Developer Pulls Brazil Float

WTorre has asked regulators to cancel its planned IPO on the Bovespa. The Brazilian commercial and industrial real estate developer does not state a reason, but poor performance of Brazilian IPOs earlier in 2010, threatening global market conditions during the middle of the year, and a huge Petrobras overhang have all conspired against smaller Brazilian issuers filing to go public. Bank of America Merrill Lynch, BTG Pactual, and Bradesco were managing the deal for WTorre. It did not communicate a transaction size, though WTorre’s adjusted Ebitda for 2009 of BRL191.4m does not suggest a large float. WTorre has historically funded itself through the domestic CRI securitization market. To help meet approaching debt maturities, it was preparing in July BRL90m in 2015 debentures, through Banco do Brasil. Bankers say smaller Brazil hopefuls filing earlier in the year – a group including Venti, Sonae Sierra and Autometal – may find themselves waiting behind the line of larger issuers aiming to follow Petrobras’ $70bn plus capitalization set to come Thursday.