Sep 24, 2012 - Brazilian renewables company CPFL Renovaveis has decided to shelve its planned initial public offering (IPO) amid uncertainties provoked by expected renewal of local energy concessions before their expiry in 2015, a source told local daily Valor Economico on Friday.
The government decision to renew the concessions in early 2013 and at lower contract prices resulted in market fear and free fall of local utilities' stock.
The company will now wait until the conditions of the new regulation become more clear and investors less weary of the government measures, the daily wrote.
CPFL Renovaveis had initially envisaged the IPO for the end of June 2012, but unfavourable market conditions had already made the company push back its launch to October or November.
The company will aim to raise about USD 800 million (EUR 619.5m) with the offering, Valor reminded.
CPFL Renovaveis was created last year via the merger of the renewable assets of Brazil's power firm CPFL Energia (SAO:CPFE3) and green energy investment player ERSA.
It has small-scale hydroelectric power plants (HPPs), wind parks and biomass energy projects. The company closed the first half of this year with an installed capacity of 4.8 GW.