Votorantim Cimentos Pulls IPO Amid Brazilian Stock Market Slump

Votorantim Cimentos SA, Brazil’s biggest cement maker, is canceling plans to sell as much as $3.7 billion in an initial public offering after the country’s benchmark index slumped the most among its biggest global peers.

The company asked securities regulators in Brazil and the U.S. to withdraw its request for the share offering, according to an e-mailed statement today. Votorantim had suspended its IPO because of the market selloff, according to a June 19 statement published in newspaper Valor Economico.

“The current market conditions reinforce the low probability of a window of opportunity for the offering in the short term,” the Sao Paulo-based company said today. It is still considering a stock sale and will continue to monitor markets, according to the statement.

The Ibovespa plunged 18 percent this year through Aug. 9, the most among the world’s 20 biggest equity benchmarks, wiping out $222 billion from the value of Brazilian stocks. The index sank into a bear market on June 11 as faltering growth drove down consumer stocks and raw-material exporters slid with commodities on concern the Federal Reserve will scale back U.S. monetary stimulus.

The cement maker and its parent, Votorantim Participacoes SA, said in a May 29 regulatory filing they would offer 400 million units for listing in Sao Paulo or their equivalent in American depositary receipts in New York. It’s the first IPO to be postponed in Brazil this year, after eight initial share sales were suspended or scrapped last year, data compiled by Bloomberg show.

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