The Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários - CVM) has suspended Azul Linhas Aéreas Brasileiras's Initial Public Offering (IPO) for thirty days citing numerous omissions and violations of regulatory protocols.

In a statement issued on Tuesday, April 4, the CVM said the Superintendent of the Securities Registry had found Azul had violated three key rules.

The first involved the disclosure of information to investors, during investment roadshows, which the regulator considered to be irregular publicity material. The second pertained to the carrier's failure to include in its official investor's prospectus, projections about its investment in TAP Portugal (Lisbon) which it had disclosed during its marketing roadshows. The third factor centred on the disclosure of sensitive information to journalists about the IPO's anticipated pricing and demand projections.

The CVM noted that the suspension may be revoked before the thirty-day period expires if it considers the irregularities to have been duly corrected. "Otherwise, the request for registration of the offer will be rejected," it said.

In March, Azul said it planned to list 72 million preferred shares through the New York Stock Exchange (NYSE) and the São Paulo Stock Exchange (BM&FBOVESPA). At the time, it estimated that the IPO price would be between BRL19-23 per preferred share and between USD18.02 and USD21.81 per ADS.