Brazil's Infraero Withdraws IPO

April 9
4:15 PM 2013

Infraero, the Brazilian airport management agency, has announced that it will be postponing its IPO to 2017. The postponment comes after the agency was able to raise funds through proceeds from its licenses auction to run two airports under its management.

According to Infraero President Gustavo do Vale, the company is still planning to be publicly listed but only after it strengthens its balance sheet. He said, "In order for Infraero to go public you have to stabilize its asset base ... define the size of the company so you can sell something ... we are considering beginning with the process this year and maybe do the listing in 2017."

For many years now, from the term of popular President Luiz Inacio Lula da Silva and his successor, current Brazilian President Dilma Rouseff, there has always been a plan to partially privatize Infraero through an initial public offering to answer many of the infrastructure problems endemic to the full development of South America's largest economy.

Interested players to the licenses are Schiphol and Aeroports de Paris, who may enter one unified bid for the two licenses to the Rio de Janeiro's Galeao airport and the Confins airport in Belo Horizonte. 

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