| SAO PAULO
SAO PAULO Feb 3 Brazil's Investimentos e
Participações em Infra-Estrutura SA will delay its initial
public offering until the second quarter, a source with direct
knowledge of the matter said, suggesting that investor concerns
over recent turmoil in emerging markets may have eased by then.
Invepar, controlled by one investment fund, two
state-controlled pension funds and construction giant OAS SA
, wants to raise about 2 billion reais ($833 million)
with the IPO, said the source, who declined to be identified
because the plan is in the works.
The offering "could happen in May or June, when a window of
opportunity opens and market conditions become a little more
constructive," the source said.
The delay in Invepar's IPO comes as companies in Brazil face
fundraising challenge this year. Rising borrowing costs, weak
growth, a presidential election, and the withdrawal of monetary
stimulus in the United States have left investors skittish.
In addition, tighter global liquidity is making Brazilian
IPOs less attractive for foreign investors who have
traditionally bought two-thirds of new issues for years.
Since the start of 2013, Brazil's Bovespa stock index
has shed 23 percent, while investors have pulled about $12.6
billion from domestic financial markets in the same period.
Pension funds Petros and Funcef, an investment fund run by
state-run Banco do Brasil SA, and OAS wanted Invepar
to price its IPO by February, sources said last year.
Invepar has mulled the deal for two years, the source said.
"Invepar is considering, among many alternatives for
fundraising, an IPO," the company said in a statement to
Reuters. "Should Invepar opt for that alternative, markets will
be promptly informed."
Investors such as Fator Administradora de Recursos' Fabio
Moser said an Invepar IPO would offer exposure to Brazil's
fast-growing infrastructure sector.
Creating an attractive environment for infrastructure may
bolster Brazil's economy, which has struggled in the past three
years. The country has the lowest investment ratio among Latin
America's top economies despite getting the region's biggest
chunk of direct investments and capital inflows.
Invepar operates toll roads in Brazil and Peru, a subway
line in Rio de Janeiro and São Paulo's international airport -
The company hired the investment-banking units of Banco do
Brasil, Bank of America Corp, Itaú Unibanco Holding SA
, Grupo BTG Pactual SA , Banco
Bradesco SA, Citigroup Inc and HSBC Holdings
Plc to handle the deal, the source said.