(Adds IPO cancellations by Brazilian companies)
SAO PAULO, March 13 (Reuters) - Brazil securities industry regulator CVM said on Friday that it will grant extensions to registered share offerings, allowing companies that have received IPO authorization to delay the issue for up to 90 days.
The move reflects deteriorating economic climate and market turmoil.
CVM said that companies will have 30 days to request the extensions.
Brazilian benchmark stock index Bovespa has lost almost 30% over the last three months, affecting expected valuation and investor interest in new offerings.
Shortly after CVM’s announcement on Friday, Brazilian bank BV became the latest company to suspend a planned share offering after this week’s market rout.
BV is a venture between state-controlled Banco do Brasil and Votorantim Financas, the Votorantim Group’s financial wing.
On Thursday, Brazilian state bank Caixa Economica Federal decided to suspend the IPO of its insurance unit Caixa Seguridade SA that was expected to be one of the largest Brazilian offerings of the year.
Reporting by Aluisio Alves; Writing by Jake Spring and Tatiana Bautzer; Editing by Daniel Wallis and Cynthia Osterman
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