CVM, Brazil's securities industry watchdog, had suspended on Friday the public listing of Grupo Ser Educacional SA. CVM said the suspension was because Ser Educacional had not listed tax information on its prospectus. The suspension could last up to 30 days for Ser Educacional to comply.
The tax information that Ser Educacional should have disclosed its prospectus would be detailed information on its tax benefits from a government program. The government program provides tax exemptions to academic institutions that were involved in a tuition fee subsidy program.
CVM said, "The suspension could be revoked, within the period above mentioned, if the irregularities found are properly fixed. The decision was taken because the prospectus ... did not contain the necessary information that an investor requires to take a thoughtful investment decision."
The initial public offering of Ser Educacional was a much-anticipated debut on the São Paulo Stock Exchange after a three-month listing drought. Ser Educacional and its shareholders hoped to raise BRL723.3 million or USD333 million in its planned IPO.
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