Azul Said to Postpone $450 Million IPO on Market ConditionsCristiane Lucchesi
Azul Linhas Aereas Brasileiras SA, the Brazilian airline created by JetBlue Airways Corp. founder David Neeleman, is postponing its IPO, less than a week after Votorantim Cimentos SA delayed its share sale, according to three people familiar with the situation.
Azul is suspending the offering due to market conditions, said the people, who asked not to be identified because the decision hasn’t been made public. The company had sought to raise as much as 1 billion reais ($450 million), said one of the people, and it still plans to move forward once conditions improve, said another person.
Azul’s press office didn’t respond to phone and e-mail requests for comment.
Votorantim Cimentos SA, Brazil’s biggest cement producer, said on June 19 it suspended an initial public offering of about $3.7 billion. The deal, which would have been the world’s second-biggest IPO this year, was a victim of “unfavorable market conditions,” the company said.
Brazil’s Ibovespa index has plunged 18 percent in the past month, with Gol Linhas Aereas Inteligentes SA, the nation’s only publicly traded airline, losing 36 percent. Year to date, Brazil’s benchmark is down 30 percent in dollar terms, making it the worst performer in 2013 among the world’s biggest equity benchmarks.