Brazilian car rental company Unidas SA plans to scrap an initial public offering slated to be priced later on Friday, reflecting sluggish investor demand after a rival listing earlier in the week, two people with direct knowledge of the situation said.
According to the people, who are not allowed to speak publicly on the process, shareholders Gávea Investimentos Ltda, Vinci Partners and Kinea Investimentos Ltda shunned a suggestion from the banks underwriting the IPO to cut the suggested price tag earlier in the week.
That, coupled with competition from rival Movida Participações SA’s listing, has prompted the company to announce the decision to suspend the process, they said.
Banks are working on ways to help the three shareholders divest their combined stake of about 45 percent in Unidas, one of the people said.
Unidas did not have an immediate comment.