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Brazil Cycle Maker Brasil & Movimento Cancels IPO Plans

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SAO PAULO, Brazil – Brazilian motorcycle and bicycle manufacturer Brasil & Movimento SA decided to cancel its initial public offering of shares on the Brazilian Stock Exchange, or Bovespa, because of adverse market conditions, the company said in a statement Wednesday. The company had postponed the IPO three times since May, after local capital markets were affected by emerging market volatility caused by the flight of foreign investment into havens such as U.S. Treasuries.

SAO PAULO, Brazil – Brazilian motorcycle and bicycle manufacturer Brasil & Movimento SA decided to cancel its initial public offering of shares on the Brazilian Stock Exchange, or Bovespa, because of adverse market conditions, the company said in a statement Wednesday. The company had postponed the IPO three times since May, after local capital markets were affected by emerging market volatility caused by the flight of foreign investment into havens such as U.S. Treasuries.
 
 
Brasil & Movimento had planned to raise around 180 million Brazilian reals (US$ 82.4 million) from the IPO. The cancellation comes amid signs that emerging market volatility had eased, with local companies returning to the capital market. The Brazilian Stock Exchange’s benchmark Ibovespa stocks index plunged from a record high close of 41,979 points on May 6 to a close of 32,847 points on June 13. However, the index has showed signs of a recovery, closing Tuesday at 36,553 points. Last week, two real state companies, Cyrela Brazil Realty SA (CYRE4.BR) and Abyara Planejamento Imobiliario SA announced share offers.

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