Lubricant maker Moove postponed its initial public offering on the New York Stock Exchange a few hours before it was due to start. The company blamed “adverse market conditions” and orders from foreign investors being shy of the proposed share price range.
Moove is owned by Cosan, a Brazilian conglomerate that produces bio-ethanol, sugar and energy, and was formed from Exxon assets bought by Cosan. Had it gone through, the IPO would have been the first by a Brazilian company in New York in three years.
Cosan wanted the IPO to raise U.S.$400 million from the sale of 25 million shares and to set the value of Moove at $1.8 billion, according to press reports. Cosan was hoping for offers between $14.50 and $17.50 per share, so it decided to pull the plug after it was getting $12.50-13.00.
Moove was due to get $100 million to pay for some of the acquisition of DIPI Holdings, a Brazilian lubricant maker.
Moove has production sites in Brazil, the U.S. and the United Kingdom, from where it serves European markets such as Spain, Portugal and France. It also has a presence in Argentina, Bolivia, Paraguay and Uruguay. Almost half of the company’s income is derived from South America.
New York was chosen for the IPO because of the investor profile in the United States, as well as access to international markets.