Karoon Gas Australia Ltd
(ASX:KAR) has ditched its plans to list its South American assets, Karoon SA, in Brazil, after investors failed to support the IPO.
In October Karoon said it hoped the IPO would raise between $US621 million to $US773 million to help fund its exploration programs.
However, the company has today announced that unfavourable market conditions have led it to scrap the proposed IPO.
Adding that, recent capital raising by Brazilian oil and gas companies have not performed to market expectations causing investors to hesitate.
Karoon says it will now consider waiting for conditions to improve before making its next move.
Karoon Gas booked a net loss of $14.89 million in fiscal 2010.
