Brazil’s Privalia suspends IPO after market volatility

RIO DE JANEIRO, BRAZIL – Privalia has suspended its IPO due to market volatility, according to a notice to the market on Tuesday, July 20.

On Monday, July 12, the company had determined that the indicative price for its shares would range between R$16.30 (US$3.12) and R$18.10 in an operation supported by BTG Pactual.

The company was going to issue 23,235,551 shares in the primary restricted offer and 20,348,837 in the secondary, in which the funds would go to the selling shareholder.

BTG Pactual has committed to subscribe and pay-in shares equivalent to up to 5% of Privalia’s capital in the IPO, which would list the company’s shares in B3’s Novo Mercado (B3SA3).

The agreement included an option for BTG to buy an additional 5% of Privalia shares between 18 and 36 months after the IPO.

The proceeds from the primary offering would be used to acquire assets from the controlling shareholder, transfer the e-commerce platform from the controlling shareholder, invest in marketing, strengthen the company’s working capital, and make potential business acquisitions.