Copersucar delays initial public offering

Copersucar, Brazil’s biggest sugar and ethanol trader, has delayed its initial public offering (IPO) apparently due to the global financial turmoil. The company could resume its IPO within 60 days if there are no modifications to the offering. Copersucar is one of several Brazilian companies that have suspended offerings in response to worries about the economy. Sugar producer Tereos International also recently suspended plans to sell shares in the company. Copersucar, which is based in Sao Paulo, had expected to offer 145.95 million shares and raise approximately US1$1.7 billion. The additional income from the IPO was slated to be used for expansion and upgrading of current facilities in addition to strengthening the company’s capital base. Copersucar hired the investment banking units of Itau Unibanco, Credit Suisse Group , Goldman Sachs Group and Bank of America to manage the offering. (July 20, 2011)