U.S. Markets closed

STXNEWS LATAM-Brazil's GAEC says working to revoke trading suspension

GAEC Educacao SA, a Brazilian education company that last week raised $213 million in an initial public offering, said on Wednesday it was working to reverse a decision by securities industry watchdog CVM to suspend trade of its shares.

CVM handed down the suspension due to statements attributed to Ozires Silva, GAEC's chairman, and published in local newspaper Valor Economico on Monday.

According to GAEC, Silva spoke to Valor early in September, well ahead of the deadline for the offering, but his comments were published only this week, when the company was still subject 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 the reason to suspend trading of the company's shares "are not information that investors should use or read as guidance but instead ... base their investment decisions on the offering's prospectus and additional, related documents," GAEC said in a securities filing.

The watchdog said it could reverse the suspension if GAEC "corrects" the perceived irregularities or it could cancel the IPO should GEAC fails to take such steps.

Silva told Valor that he planned to build an engineering university similar to Instituto Tecnologico de Aeronautica, a renowned university specialised in engineering and aerospace.

He also told the newspaper he planned to ask the government to broaden tax exemptions to make the venture possible.