GAEC Educacao SA, a Brazilian education company thatlast week raised $213 million in an initial public offering,said on Wednesday it was working to reverse a decision bysecurities industry watchdog CVM to suspend trade of its shares.
CVM handed down the suspension due to statements attributedto Ozires Silva, GAEC's chairman, and published in localnewspaper Valor Economico on Monday.
According to GAEC, Silva spoke to Valor early in September,well ahead of the deadline for the offering, but his commentswere published only this week, when the company was stillsubject to a quiet period following the IPO.
The shares began trading on Oct. 28.
A series of statements by Silva that the CVM used as thereason to suspend trading of the company's shares "are notinformation that investors should use or read as guidance butinstead ... base their investment decisions on the offering'sprospectus and additional, related documents," GAEC said in asecurities filing.
The watchdog said it could reverse the suspension if GAEC"corrects" the perceived irregularities or it could cancel theIPO should GEAC fails to take such steps.
Silva told Valor that he planned to build an engineeringuniversity similar to Instituto Tecnologico de Aeronautica, arenowned university specialised in engineering and aerospace.
He also told the newspaper he planned to ask the governmentto broaden tax exemptions to make the venture possible.