Registration of Havan’s IPO application is rejected by CVM

The application for registration as a publicly-held company by havan was dismissed, as published by the Brazilian Securities and Exchange Commission (CVM) on Monday (23), interrupting the retailer’s plans for an initial public offering (IPO, the acronym in English) for the second time.

It was not immediately clear whether the interruption was at the company’s own request.

The entrepreneur Luciano Hang, notorious supporter of the president Jair Bolsonaro, planned to sell a slice of the iconic chain of stores that have replicas of the Statue of Liberty on the façade, and seek resources to open distribution centers and stores, in addition to investing in technology and strengthening working capital.

However, he gave up for the first time last October of carrying out the operation because investors did not accept to value the company at around R$ 100 billion, as the businessman had intended.

In the second attempt, the application for registration as a publicly-held company was not immediately accompanied by a request to carry out a share offering, which indicated that Havan preferred to wait for the best moment in the market for the transaction.

In 2021, nearly 60 companies have already given up on listing plans in the B3, as fears about an early cycle of interest rate hikes in the United States and a possible new wave of Covid-19 have dictated strong stock volatility.

Among the 32 who managed debut on the São Paulo stock exchange, most had to accept to sell their shares at the floor of the estimated range of intended value, or even below it.

In addition, many of them have seen their shares fall even further since their debut, as the lack of a longer track record in the market has placed them as prime selling targets by asset managers at a time of uncertainty.