Brazil unit of Dreyfus commodity giant delays IPO

The Brazilian sugar, ethanol and bioenergy unit of Louis Dreyfus Commodities said Thursday it was delaying the trading debut of its shares on the Sao Paulo stock exchange, citing market uncertainty. A company statement said the decision was made after a Wednesday meeting in Sao Paulo of the board of directors of Biosev, which until June was known as LDC-Sev. "The uncertainty on the financial market are the reasons for delaying the trading debut in the new market," the subsidiary of the French agribusiness giant said. The Dreyfus unit announced last May it had filed for an IPO on the Sao Paulo bourse. Kenneth Gold, president of the Biosev board of directors, insisted that the company had good exposure in the Brazilian and international markets. "We are confident that when the economic picture improves, there will be new opportunities to launch our IPO," he added. Biosev gave no figures but the Brazilian press speculated that the company was seeking to raise nearly $500 million. The Dreyfus unit manages 330,000 hectares (815,447 acres) of land and employs more than 20,000 people in Brazil. With 13 plants on Brazilian soil, Biosev is the world's second largest sugar, ethanol and bioenergy company. Brazil is the world's first sugar producer and exporter, and the second ethanol producer behind the United States.