Business

Brazilian regulator grants extension to IPOs due to coronavirus

The decision by CVM, according to Reuters, reflects deteriorating economic climate

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  • The companies will have 30 days to request the extension;
  • The Brazilian benchmark stock index Ibovespa fell almost 30% over the last three months.

Brazil‘s securities industry regulator CVM has announced on Friday that “it will grant extensions to registered share offerings, allowing companies that have received IPO authorization to delay the issue for up to 90 days.”

The companies will have 30 days to request the extension. According to Reuters, the Brazilian benchmark stock index Ibovespa fell almost 30% over the last three months. In one week, the companies that make up the index lost BRL 500 billion ($5.5 billion), according to the Valor Econômico newspaper.

CORONAVIRUS IN LATIN AMERICA: Follow the economic impacts and the updates about the COVID-19 on LABS Special Page.

According to analysts, CVM’s decision show that the economic climate is deteriorating as the new coronavirus spreads across the country.

Brazil is the Latin American country with the largest number of confirmed cases: 98. The entire region already has more than 250 confirmed cases, and health officials expect this number to be quite high in the coming days.