Perenco Cancels IPO Shelf

Brazil’s Perenco e Gas do Brasil Participacoes officially has revoked its IPO registration after pulling a planned deal in July. The Brazilian unit of UK-based oil exploration company Perenco, which cited market conditions for the decision not to move forward, had planned to sell 0.4m primary shares at BRL1,550-BRL2,000, meaning a deal of perhaps BRL830m ($530m). Perenco, which operates in 16 countries worldwide, had planned to use the funds to develop its 5 blocks in the Espirito Santo Basin and acquire additional blocks. About a third of the raise was slated for acquisitions, including new government auctions. BTG, Itau and Morgan Stanley were leads. The deal was among several Brazilian sales pulled in June and July as equity markets tanked. The new issuance pipeline has been slow to rebuild, with no new launches and only travel company CVC filing for a transaction.