Voto Withdraws Cimentos IPO Registration

Brazil’s Votorantim Cimentos has officially requested the cancellation of its IPO registration in the US and Brazil, according to regulatory documents. The industrial conglomerate blames market conditions that make such a sale unlikely in the short term. An IPO remains in the issuer’s medium to long-term plans, ECM bankers say. The cancellation follows the postponement of the transaction days before the scheduled pricing in June. The cement maker was targeting more than BRL8.0bn ($3.49bn) in the sale of 286m primary units and 114m secondary units at BRL16.00-BRL19.00 each. Concern about the US Fed winding down monetary stimulus shook the markets beginning in May, making life difficult for equity issuers, particularly IPOs. BTG Pactual, Credit Suisse, Itau, JPMorgan and Morgan Stanley were the global coordinators on the transaction, with Banco do Brasil, Banco Votorantim, Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and HSBC as bookrunners.