April 7, 2017 / 8:34 PM / 8 months ago

Brazil airline Azul tentatively reschedules IPO for Monday

SAO PAULO (Reuters) - Brazilian airline Azul SA is tentatively planning to price its initial public offering on Monday, according to a statement on its website, pending approval of securities regulator CVM, which suspended the offering hours ahead of pricing.

An Azul aircraft prepares for departure at Congonhas airport in Sao Paulo, Brazil, November 24, 2015. REUTERS/Paulo Whitaker

The CVM on Thursday suspended the IPO for up to 30 days due to several news stories gauging investor demand in recent days, as well as the release of a video in which executives gave projections not present in the official prospectus.

Azul said it had removed the video from an investor website and would return funds to any retail investors that wanted to back out of offering by next Thursday, April 13.

The CVM has recently toughened oversight of domestic debt and equity offerings as companies are returning to capital markets after a three-year drought. The decision could be reversed if Azul “fully corrects the flaws” that led to the IPO’s suspension, CVM said on Thursday.

Reporting by Brad Haynes; Editing by David Gregorio

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