The Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários - CVM) has announced it has overturned a motion effected on Tuesday, April 4, freezing the IPO process of Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos).
In a statement issued late on Friday, April 7, the CVM said it had decided to reverse the decision after Azul and the banks that are participating in the offer remedied the irregularities that had led to the suspension.
As previously reported, the regulator had pointed to three key areas where Azul had allegedly violated Brazilian listing protocols. The first involved the use of what the CVM deemed "irregular publicity material" during investor roadshows. 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.
Azul said on Friday, April 7, that it has revised its presentations accordingly and has issued a statement advising investors and all other interested parties to disregard any information or disclosures made through the media.
As it stands, the IPO's settlement date has been set at April 13, 2017.
