Uncertainty in Brazil hurt IPO of Petrobras distribution unit -source
By Reuters Staff
RIO DE JANEIRO
Petroleumworld 12 15 2017
Uncertainty about Brazil's economy hurt the initial public offering (IPO) of Petrobras Distribuidora SA, the distribution unit of state oil company Petroleo Brasileiro SA, a company source said on Thursday.
“Of course in a better macro environment, the transaction would have been larger. When I talk about the macro environment, I‘m talking about the fiscal and pension issues,” said the person, citing the government's efforts to trim social security benefits in order to rein in surging public debt.
No additional share offerings of BR Distribuidora are planned, the source said. Petrobras, as the oil company is known, raised $1.5 billion with the IPO, which priced at the bottom of the suggested range.
Reporting by Rodrigo Viga Gaier; Writing by Marcelo Teixeira Editing by Chizu Nomiyama from Reuters.
reuters.com 12 14 2017
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