Water Smallcap Doesn’t Float

CAB Ambiental has opted not to sell shares through an IPO Wednesday, according to a banker on the deal. The operator of water and sanitation concessions had been looking to raise about BRL100m in what would have been just the second company to list on the Bovespa Mais, a special program for small companies. Sao Paulo-based CAB, which stands for Companhia de Aguas do Brasil, had planned to sell 7.16m shares at a range of BRL11-BRL14, but was unwilling to sell at the price investors asked, and will consider other options for fundraising, the banker says. CAB is owned by the Galvao Participacoes conglomerate, and operates 11 concessions and 2 PPP contracts of 16-30 years, in the Sao Paulo, Parana and Mato Grosso states. Banco Safra and Banco do Brasil were managing the sale.