* Builder to resume plan in August, official says
* IPO comes as way of raising funds for large projects
* Company plans to sell 90 mln reais in local notes
SAO PAULO, July 14 (Reuters) - Brazilian builder WTorre Empreendimentos expects to resume plans for an initial public offering as early as next month, after market turmoil led management to suspend the program in May, a top executive told Reuters on Wednesday.
The company has until Aug. 18 to tell regulators whether it will proceed with an IPO, but it expects to detail a timetable for the offering once second-quarter results are out, Investor Relations Director Bruno Queiroz said in an interview.
“We never considered canceling the offering ... We have all the intention to continue with it,” Queiroz said.
Demand for civil construction in Latin America’s largest economy is surging as the government executes a $400 billion infrastructure investment plan and the country prepares to host two of the world’s biggest sporting events.
Privately owned WTorre scrapped IPO plans for the first time in 2007, when investors shunned real estate offerings amid a record 14.5 billion reais of offerings.
Since last year, analysts have warned of a glut of real estate share offerings, which builders are using to profit from gains in their stock prices and to finance expansion.
Queiroz admits that giving up on the IPO plans is still an option. He cited as risks a further deterioration of global sentiment in the wake of the worst sovereign debt crisis in the euro region since its creation more than a decade ago, market volatility stemming from the presidential election in Brazil and weak demand for new issues due to a large offering by state-controlled company Petrobras PETR4.SA.
The company plans to use proceeds from the IPO partly to raise cash for three large projects in Sao Paulo, the nation’s most populous city. One of them is the $170 million reform of soccer team Palmeiras’ stadium in the western district of Pompeia.
WTorre will also use part of the money to repay some existing debt and build up a bigger cash cushion, Queiroz added.
The company also announced on Wednesday the sale of 90 million reais ($51 million) in local, real-denominated five-year notes. Proceeds from the bond sale will be used to repay short-term obligations, Queiroz said.
$1 = 1.763 reais (Writing by Guillermo Parra-Bernal, editing by Matthew Lewis)
Our Standards: The Thomson Reuters Trust Principles.