SAO PAULO (Reuters) – International Meal Co, the Brazilian restaurant chain controlled by U.S. private equity fund Advent, put off indefinitely plans to go public in Brazil due to weak demand, the International Financing Review said on Thursday, without saying how it got the information.
The initial public offering was slated to price later on Thursday, but the IFR said it is “on hold indefinitely.” The IPO was the last deal slated for this year, IFR said.
The decision by shareholders and bankers advising the transaction came after medical services firm Fleury (FLRY3.SA) and shareholders this week raised 630.2 million reais ($352 million) in an IPO.
According to IFR, the offering had attracted the attention of investors in the equity capital markets because of its large size. Advent wanted to pocket gains from its investment in the company, which comprises the popular Frango Assado grilled chicken shops and Viena, a casual dining restaurant chain aimed at middle-class consumers that operates in Brazilian airports and shopping malls.
IMC was offering 57.1 million voting shares at a range of 14 reais to 17 reais. Shareholders of IMC could have raised up to 971.4 million reais in the transaction.
Advent’s Sao Paulo-based executives could not be reached to comment on the IFR report. An e-mail sent to a senior executive at the firm did not get an immediate response.
(Reporting by Guillermo Parra-Bernal; Editing by Richard Chang)