The government of the Brazilian state of Rio Grande do Sul canceled the share offering of Banco do Estado do Rio Grande do Sul SA, saying the price per share did not reflect its best interest, according to a filing.
Two unnamed sources interviewed by Valor Econômico said the offering failed to attract investors willing to pay the minimum asking price at 19 Brazilian reais per share.
Investors were reportedly displeased with the reduction of the amount of shares being offered, and the increase in the price per share, which was at 18.50 reais as of Sept. 17.
Banrisul, as the bank is known, reduced the number of common shares in the secondary offering to 71,350,686 from 96,323,426, adding it could still bring the number of offered shares back to the original amount up until the completion of the offering's bookbuilding procedure.
As of Sept. 18, US$1 was equivalent to 4.10 Brazilian reais.
