JetBlue Founder Neeleman’s Azul Pulls IPO as Ibovespa SlumpsJulia Leite
Azul Linhas Aereas Brasileiras SA, the airline created by JetBlue Airways Corp. founder David Neeleman, became the second company in Brazil to cancel an initial public offering this year amid a market slump.
Barueri, Brazil-based Azul said today in regulatory filing that it withdrew its request with securities regulators for the share offering. The airline, which filed on May 27 for an IPO, delayed the sale in June because of market conditions, three people familiar with the situation said at the time. Azul was seeking to raise as much as 1 billion reais ($415 million), one of the people said.
The company said in an e-mailed response to questions that it canceled the offering because of “unfavorable macroeconomic conditions,” and it still intends to do an IPO.
The cancellation comes a week after Votorantim Cimentos SA, Brazil’s biggest cement maker, cited market deterioration when it pulled plans to sell as much as $3.7 billion in an IPO. The Ibovespa has lost 16 percent this year, the most among the world’s biggest equity benchmarks.
Gol Linhas Aereas Inteligentes SA, Brazil’s only publicly traded airline, has lost 35 percent in 2013.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.