SAO PAULO (Reuters) - Brazilian toy retailer Ri Happy Brinquedos SA has decided to postpone its initial public offering due to weak investor demand, according to a person with knowledge of the decision.
The retailer, which is totally controlled by Carlyle Group LP, had expected to get a valuation of up to 1.7 billion reais ($514.75 million) through the IPO, which was scheduled to be priced on Tuesday. The shares were due to start trading on the Sao Paulo stock exchange on Thursday.
The decision to postpone the IPO was made on Friday and followed recent meetings in which investors expressed an unwillingness to agree to Ri Happy’s expected valuation.
U.S. toy retailer Toys R US’s announcement that it would close its stores after filing for bankruptcy protection in September further clouded the situation.
Ri Happy declined to comment on Monday. Carlyle did not immediately respond to requests for comment.
The decision to pull back from the IPO was first reported on Sunday by newspaper O Estado de S. Paulo.
($1 = 3.3026 reais)
Reporting by Carolina Mandl; Editing by Paul Simao