The Brazilian Securities Commission (CVM) rejected the retailer’s application for a publicly-held company havan, reported the agency Reuters this Monday (23).
The company of businessman Luciano Hang had requested registration from CVM in May, without a solicitation for an IPO (IPO, the acronym in English). Almost seven months earlier, Havan had definitively given up on going public on the São Paulo Stock Exchange (B3).
At the time, the company planned to raise enough resources to boost the market value to BRL 100 billion, as it intended Luciano Hang.
The net resources raised through the primary offer would be earmarked for:
- expansion of stores and the distribution center;
- opening of new units;
- increased support for organic growth;
- technology area;
- working capital reinforcement.
The challenges for Havan to go public are not few. Experts point out from governance problems and excessive dependence on the figure of its controller, known for being a fervent supporter of President Jair Bolsonaro, to questions about the company’s transparency and the information presented on the investor relations (IR) website.
But there are other issues. Corporate governance, for example, is far from the practices of publicly traded companies. The board of directors is made up of just three people, one of whom is Luciano Hang. The company complies with the determination of the Corporations Law (SAs), but not with the indication of the collegiate to be composed of between 5 and 11 members, made to publicly-held companies by the Brazilian Institute of Corporate Governance (IBGC).
Havan has a loss of R$30m in 1Q21
Havan had a loss of BRL 30 million in the first quarter of 2021, a number 84.9% lower than the deficit of BRL 199 million registered in the same period last year.
Net operating revenue was BRL 1.7 billion between January and March this year, falling 6.5% on an annual basis. The company attributed the setback to the effects of the Covid-19 pandemic, which increased the time that stores are closed (12% of days) and defaults.
The EBITDA of havan it advanced, despite the drop in revenue, with an increase of 86.1% on an annual basis, reaching R$ 201 million. The Ebitda margin went from 5.8% to 11.6%.
(With Content Status)