Business, Zenvia postpones IPO due to stock market volatility

Hearing service provider NV and telecommunications technology company Zenvia Inc. Has postponed the initial public offering due to the volatility of the stock market, people familiar with the matter said.

Both and Zenvia were set to price on Thursday and start trading on Friday. People said their timeline is currently in flux. On Wednesday, private mortgage insurer Enact Holdings Inc. also decided to postpone its IPO. Enact said Thursday that recent market volatility means that “the current market price of the planned offering does not accurately reflect the value of Enact.”

Equity markets have plummeted this week, although they are still rising this year. The S & P 500 fell 4% in the first three days of the week, rising 1.2% on Thursday, but the sharpest three-day fall in seven months. Companies generally prefer to make their open market debuts a rising, or at least not volatile, stock market environment.

The Netherlands-based was trying to raise about $ 300 million in the public market at the midpoint of the target price range, while Brazil’s Zenvia is trying to raise $ 213 million at the midpoint. did. Enact, a spin-off of Genworth Financial Co., Ltd.

According to a regulatory filing, it was about to raise about $ 500 million.

The decision to postpone the offer is the latest sign of a chill in the US IPO market, which has been hot for nearly a year.

Despite the Covid-19 pandemic, the company entered the US public market last year, raising a record $ 167 billion, according to Dealogic. According to Dealogic, the enthusiastic pace of funding showed no signs of slowing in early 2021, with companies raising about $ 158 billion by Wednesday.Large and lively companies including dating app maker Bumble Co., Ltd.

And cryptocurrency company Coinbase Global Co., Ltd.

This year is one of the people who are pioneering the market.

However, in recent weeks, these stocks have struggled as investors have come to favor value stocks from fast-growing companies, which usually do not grow very fast and trade at low book value multiples. ..

On average, 2021 US-listed IPOs, excluding blank-checking companies, are up 6.4% from IPO prices until Wednesday’s closing price, according to the latest data available from Dealogic. From this year to Wednesday’s closing price, the S & P 500 rose 8.2%, while the technology-equipped Nasdaq Composite index rose 1.1%.

Write to Corrie Driebusch (

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