Brazil’s Ale Ponders IPO

Ale Combustiveis, a Brazilian fuel distribution company, is pondering an initial public offering, an option that company owners and their private equity partners have contemplated for some time. Timing has yet to be determined but much depends on market conditions, company official says. An IPO is part of the company’s business plan given that the private equity firm Darby, a unit of Franklin Templeton Investments, holds a small stake in the company, the official adds. Ale is considered the sixth largest fuel distribution company in the Brazilian market competing with such names as Petrobras, BR Distribuidora and Ultrapar, which dominate the local fuel supply business. The company has more than 1,750 service stations across the South American country and controls roughly a 5% share of the industry.