Drugstore Pulls IPO

Pague Menos has officially cancelled its IPO plans, it says, following a failure to launch a deal last month as the Brazilian drugstore operator intended. It had been targeting a BRL500m ($246m) sale in order to raise funds for expansion. Banco do Brasil, Credit Suisse, Itau and Santander had the mandate. Pague Menos and car retailer AutoBrasil had each hoped to price IPOs in the September-October windows, and now Brazil’s IPO prospects look bleak for the remainder of the year. The market appears to be open for follow-on offerings before the end of the year, though, with meatpackers Minerva and Marfrig and shopping mall operator Aliansce planning deals.