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The long-anticipated flotation of Brazilian airline Azul Linhas Aéreas Brasileiras failed to launch on Thursday after the country’s securities regulator suspended the listing process, citing investor roadshow materials that it had not approved.

The Securities and Exchange Commission of Brazil, known as the CVM, said in a statement that Azul had made projections about its investment in Portuguese carrier TAP during marketing roadshows in the lead up to the initial public offering that were not disclosed in its prospectus.

The suspension will last for 30 days after which Azul may once again attempt a flotation. The freeze can be lifted if the group, Brazil’s third largest airline by passenger volumes, addresses the irregularities before the 30 day mark.

The IPO had been set to price later on Thursday, as bankers worked to finalise order books and allocations of the deal. Azul, founded by former JetBlue chief executive David Neeleman, has attempted an IPO several times before, each time failing to get the deal off the ground.

Thursday’s expected flotation had been seen as a win for Brazilian capital markets, after a moribund 2016 when just one deal priced, according to Bloomberg data. Azul’s listing of preferred shares in Brazil and the US was to follow a pickup in IPO activity with the float of car-rental group Movida Participacoes and Instituto Hermes Pardini, a healthcare company, earlier this year.

Copyright The Financial Times Limited 2017. All rights reserved.
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