Brazil’s Julio Simoes slashes IPO price on demand

* Julio Simoes slashes IPO to 8.5 reais-9.5 reais range

* IPO pricing delayed by one day

* Price cut latest sign of tepid appetite for Brazil IPOs

SAO PAULO, April 16 (BestGrowthStock) – Brazilian transportation
company Julio Simoes Logistica (JSLG3.SA: ) slashed the proposed
price for its initial public offering and delayed the pricing
by one day, in the latest sign of tepid investor demand for
IPOs in Latin America largest economy.

The company said it in a statement published in Valor
Economico newspaper that it will offer 55.81 million new common
shares, the equivalent of a 29 percent stake, at a price of 8.5
reais to 9.5 reais. Julio Simoes had previously set the IPO
price range at 10.75 reais to 13.75 reais.

Sao Paulo-based Julio Simoes expects the IPO to price on
April 16, one day later than the original date, and the shares
to begin trading on the Sao Paulo stock exchange on April 20.

At the low-end of the revised offering price, Julio Simoes
would raise 474.41 million reais ($270.8 million), nearly 62
percent less than 767.44 million reais at the top end of the
initial range.

The company plans to tap a market in Brazil that has
shunned IPOs, with four out of six initial offerings this year
pricing below their expected range. Companies that were set to
go public, including electricity generator Renova Energia SA
(RNEW11.SA: ) and restaurant operator International Meal Co
Holdings, either canceled or delayed their plans to sell
stock.

Bradesco BBI, the investment banking unit of Banco Bradesco
(BBDC4.SA: ), is managing the offering. Credit Suisse (CSGN.VX: )
and BTG Pactual [BTG.UL], the investment bank controlled by
billionaire Andre Esteves, are also helping to underwrite the
IPO.

Stock Research Tools

($1=1.752 reais)
(Reporting by Elzio Barreto, editing by Gerald E. McCormick)

Brazil’s Julio Simoes slashes IPO price on demand