Ambipar takes up IPO talk again

Ambipar takes up IPO talk again

IPO Equity Capital Markets Corporate & Sovereign Strategy Regulation Rule 400 Brazil

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Brazilian environmental services company Ambipar has asked the local securities regulator CVM to reevaluate a possible initial public offering (IPO) in the local stock market.

Ambipar announced its intention in February to make its debut on the B3 stock exchange in São Paulo, but it stepped back from those plans on April 9 after the coronavirus pandemic caused economic activity to slow significantly and sent stock prices into a tailspin.

Brazil's stock market stood close to 114,000 points when Ambipar first asked the CVM to consider a possible IPO. It now stands below 87,000 points.

Ambipar had hired Bradesco BBI, Bank of America and BTG Pactual to arrange primary and secondary offerings on the B3. It added at the time that it would use the money from the primary offering to add to working capital and fund its expansion plans, including possible acquisitions.

Ambipar has worked on the worst mining disaster in Brazil and the biggest industrial fire in the United Kingdom. More recently, it said it provided support to the British Army to contain the spread of the coronavirus in the United Kingdom.

Brazil's IPO market was set for a banner year, but many companies either cancelled or postponed planned offerings during the coronavirus pandemic, including mid-sized lenders Banco Daycoval and Paraná Banco, insurer Caixa Seguridade, homebuilder You Inc, truck rental company Vamos and waterway logistics firm Hidrovias do Brasil.

Allpark Empreendimentos, a car park operator that does business under the name Estapar, went ahead with an IPO earlier this month, raising at least BRL300 million ($56.6 million) in a deal arranged by BTG Pactual, Bradesco BBI, Santander and BB Investimentos.