QGOG Postpones

Brazil’s Queiroz Galvao Oleo e Gas (QGOG) has postponed its IPO, according to people familiar with the deal. After a well-bid sale from Brazil’s Linx Wednesday night, the SEC-registered debut targeting $600m was heard getting insufficient demand as of late Thursday. There was no immediate indication of if it would attempt another pricing. Though there has been optimism for Brazilian issuers to start the year, the decision is not good news for the Brazilian oil sector, which has not seen a ECM deal in two years. Sentiment towards the sector may have been the deciding factor, rather than valuation. The drill rig operator of the Queiroz Galvao conglomerate had been offering 31.6m primary shares, assuming a 15% greenshoe, at $19.00-$21.00. It was seeking funds to make down payments for two ultra-deepwater drillships, and raise capital for new and existing projects. JPMorgan, Bank of America Merrill Lynch, and Itau were global coordinators, along with Credit Suisse and Bradesco as joint bookrunners and Jefferies, DNB, Banco do Brasil, BNP Paribas and ING as co-managers. The QGOG Constellation unit is 80% controlled by QGOG International Sarl, a vehicle owned by members of the Queiroz Galvao family.