Carrefour Brazil, or Atacadao, could raise up to BRL5.6bn ($1.7bn)
in an IPO scheduled for July 18 after bookrunners set a suggested price tag of
BRL15 to BRL19 per share.
The French
retailer is offering up roughly 297.14m shares in a primary and secondary sale
of its Brazilian subsidiary, plus an overallotment of 44.57m shares, according
to a securities filing.
Parent
company Carrefour and the Diniz Family, through Peninsula Participacoes, will
sell approximately 91m common shares, while the latter can also trigger an
overallotment of 59m shares. About 205.88m shares will be sold in the primary
portion of the IPO.
The shares
will trade on the BM&FBovespa. An IPO inked at the top of the suggested
range would value Carrefour Brazil at BRL37.6bn, according to equity capital
markets sources.
Proceeds
from the primary tranche would partially go towards potential expansion plans,
one ECM banker told LatinFinance.
Carrefour
Brazil’s IPO would be the largest since state-owned insurance company BB
Seguridade raised BRL11.47bn in an offering back in April 2013.
Paris-listed
Carrefour holds an 88% stake in Atacadao, while Peninsula has the remaining
12%, which the asset manager picked up in 2014.
Bank
of America Merrill Lynch, Bradesco, Goldman Sachs, Itau BBA and JPMorgan are
coordinating the trade.