Cosmetics maker Natura & Co. shelved a plan to switch its primary stock listing to the US from Brazil, as the war in Ukraine and the prospect of surging rates bring wild swings in global equity markets.

The Sao Paulo-based company has decided not to pursue a listing on the New York Stock Exchange for now amid higher volatility and as it focuses on moving forward with the turnaround of Avon Products Inc., chief executive officer Roberto Marques said in an interview. Natura acquired Avon less than three years ago.

“We spent the past few months talking to our shareholders and potential investors, and the conclusion is pretty clear: the US listing makes sense strategically, but maybe timing isn’t right,” Marques said. “We’ll assess the appropriate moment to resume it.”

The company, which also owns the Natura, The Body Shop and Aesop brands, had planned to list on the NYSE, while having Brazilian depositary receipts (BDRs) trade on the Sao Paulo stock exchange — the opposite of the current structure. But that was before the VIX, an indicator of expected volatility in the S&P 500, jumped to the highest level in over a year.

Other Brazilian publicly-traded firms mulling a US listing recently included digital lender Banco Inter SA, web services provider Locaweb Servicos de Internet SA and retailer Americanas SA. They were seeking to access a deeper pool of investors and get richer multiples.

By Vinicius Andrade

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