March 27, 2018 / 1:56 PM / a year ago

Argentine gas distributor pulls IPO due to 'market volatility'

BUENOS AIRES, March 27 (Reuters) - Argentina gas distributor Distribuidora de Gas del Centro canceled plans to list its shares on the Buenos Aires stock exchange due to “market volatility,” according to a letter posted on the CNV market regulator’s website late on Monday.

“Given that the sale period has ended, and due to the widely recognized market volatility, the selling shareholders have found it advisable to terminate the offer,” the letter said. “The demonstrations of interest that have been received are no longer in effect.”

The cancellation of the local market initial public offering is the latest in a series of disappointments for Argentine companies, torpedoing hopes for a boom in listings after the country’s stock markets surged in recent years.

Argentine shares have slid 4.2 percent in March, although they are still up 5.2 percent so far this year.

Distribuidora de Gas del Centro distributes natural gas to the Argentine provinces of Catamarca, Cordoba and La Rioja, according to its March 15 prospectus.

Banco Santander Rio acted as the organizer and selling agent for the IPO, while AR Partners acted as a selling agent. (Reporting by Luc Cohen Editing by Christian Plumb and Paul Simao)

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