Brazilian Utility Heard Waiting on IPO

Companhia Estadual de Aguas e Esgotos (Cedae) is heard postponing plans for IPO at least until the next issuance window, according to sources familiar with the process. Brazilians who have registered – a group that includes Linx, Senior Solution and Alupar – must launch soon if they wish to price with 3Q numbers by early February. Rio de Janeiro state water utility Cedae is looking for perhaps BRL1bn ($490m) for expansion and maintenance projects, and may come to market later in the year. Bank of America Merrill Lynch, Bradesco, BTG Pactual and Itau are managing the process. Elsewhere in Brazil’s equity market, Estacio is scheduled to raise BRL600m through a follow-on January 23. Queiroz Galvao Oleo e Gas is expected to launch soon its US IPO, according to people following the process, targeting at least $500m.