(Updates with confirmation)
SAO PAULO/MADRID, Dec 15 (Reuters) - Brazilian utility Neoenergia SA has postponed its plans for an initial public offering, the company said in a statement to the country’s market regulator on Friday, after the pricing fell short of domestic shareholders’ expectations.
Brazilian shareholders such as Banco do Brasil SA refused to reduce the suggested price in a meeting with the banks managing the IPO, three sources with knowledge of the matter said on Thursday.
Demand was insufficient to keep the range of 15.02 reais to 18.52 reais per share. Considering the lower price, shareholders and Neoenergia would have raised 2.55 billion reais ($763 million) at the offering.
Shareholders will try to revive the IPO later, but a date has not yet been decided, the sources added, asking for anonymity because they were not authorized to discuss the matter publicly.
Spanish utility Iberdrola is a controlling shareholder in Neoenergia, with a 52.4 percent stake since the merger with smaller rival Elektro in June. Banco do Brasil owns 38 percent of the utility and pension fund Previ Caixa de Previdência, 9 percent. ($1 = 3.3418 Brazilian reais) (Reporting by Tatiana Bautzer; Additional reporting by Jose Elias Rodriguez in Madrid; editing by Chizu Nomiyama, G Crosse and Adrian Croft)