Pandemic And Crisis Lead Companies to Postpone IPO on The Stock Exchange
The upsurge in cases of covid-19 and uncertainties about the direction of economic policy in Brazil have led an increasing number of companies to postpone plans to go public on the Stock Exchange.
Since the beginning of the year, at least 18 companies have officially canceled their operations, which would involve an estimated volume of R $ 15 billion in new shares. In this group, names Kalunga and Tok & Stok appear. Bank executives and experts said the trend today is for new dropouts, reflecting the crisis.
Behind this movement, there is an increasingly selective market, which means that companies have not been able to negotiate the price they consider fair for their shares – investors ask for a greater “discount” in relation to the suggested price. The companies prefer, then, to shelve the offer waiting for a better moment.