NEOENERGIA: Company Cancels IPO And Blames Market Conditions

(RTTNews) - Brazil's Neoenergia canceled primary and secondary public offering of shares and blamed unfavorable market conditions for the decision. The state-owned bank Banco do Brasil, one of Neoenergia's shareholders, said it would hold on to its 9.35% stake in the company.

In a statement, Neoenergia reported that, given the cancellation, all requests to buy the company's shares would be terminated and that investors who already made deposits to acquire the stocks would have their money back.

Neoenergia intended to raise R$ 2.8 billion with the stock offers. The estimated price for the company's stock ranged from R$ 15.02 to R$ 18.52, averaging R$ 16.77.

The company was not the first to suspend a stock offering this year in Brazil. In February, Unidas, a car rental company, also gave up an IPO due to unfavorable market conditions.