Brazil lifts suspension of Ser Educacional's public offering

Reuters

SAO PAULO, Oct 21 (Reuters) - Brazil's securities industrywatchdog CVM on Monday lifted the suspension of Grupo SerEducacional SA's initial public offering after the educationcompany included relevant tax information in the offering'sprospectus.

In a statement, the Rio de Janeiro-based regulator said thesuspension of Ser Educacional's IPO would end effectively onTuesday. Last week CVM said the prospectus lacked information ontax benefits stemming from a government program subsidizinguniversity tuition.

The impasse came amid a three-month drought in new stocklistings on the São Paulo Stock Exchange. Ser Educacional andshareholders had intended on Friday to price the IPO, with whichthey sought to raise up to 723.3 million reais ($333 million).

Brazil's $11 billion-a-year education industry has grown atdouble-digit rates in recent years as a tight job market demandsa skilled workforce with better technical knowledge, strongeranalytical abilities and proficiency in foreign languages.

Initial public offerings have become a feasible fundraisingoption for college operators, language schools and learningsystems providers, just as mergers and acquisitions activity hasheated up over the past two years.

Ser Educacional hired the investment banking units of GrupoBTG Pactual SA, Credit Suisse Group,Goldman Sachs Group Inc and Banco Santander Brasil SA to manage its IPO.

Rates

View Comments (0)