Banco do Brasil Insurance Unit IPO Suspended for 30 Days
The offer could be canceled if the irregularities are not resolved within this period, CVM added, without giving details.
State-run Banco do Brasil, the country’s largest in terms of assets, plans to raise up to 12.15 billion reais ($6 billion) in the BB Seguridade IPO. That might be the largest IPO in Brazil since 2009, when Banco Santander Brasil raised 14 billion reais [$7.08 billion].
The pricing was scheduled to take place on April 23.
Banco do Brasil shares dropped 1.1 percent to 28.04 reais [$14.18] on the Sao Paulo stock exchange. Despite the fall, it outperformed the benchmark Bovespa index, which slipped 1.7 percent on concerns about economic growth in China.
Banco do Brasil’s investment-banking unit is handling the transaction, with co-managers Banco Bradesco SA, Itaú Unibanco Holding SA, and JPMorgan Chase & Co. Other investment banks hired to help handle the deal include BTG Pactual Group, Banco Votorantim SA, Citigroup Inc and São Paulo-based Brasil Plural Banco Multiplo.