Category: Equity

Brazil Pharma plans to begin investor meetings June 4 for an approximately BRL600m ($306m) equity follow-on, ahead of a June 21 pricing, it says. The retail pharmaceutical company plans to sell 45m primary shares, and 7m secondary shares owned by members of the Silveira family. This implies a BRL628m sale, based on Wednesday’s BRL10.51 close, assuming a 15% greenshoe. A 20% hot issue is also available. Half of the primary proceeds would go to strengthening the issuer’s capital structure, 40% to new acquisitions, and the remainder to making improvements to existing operations. BTG Pactual, Bradesco and Citi are managing. Brazil Pharma raised BRL465.75m in its IPO last year, done through Bradesco, BTG, and Morgan Stanley.

Brazil’s Queiroz Galvao is said to have made preliminary filings for an IPO of its Queiroz Galvao Oleo e Gas oil services business, according to ECM participants following the process. An official filing has not yet been made. It is estimated that a transaction should come this year, at possibly more than $1bn. Bank of America Merrill Lynch, JPMorgan and Itau are heard named lead managers. The group’s exploration and production unit, Queiroz Galvao Exploracao e Producao, made its public equity debut in February 2011, raising BRL1.52bn.

Brazil Pharma plans to raise BRL600m ($316m) in an equity follow-on, it says. It does not specify the exact timing. The retail pharmaceutical operator notes that 86% of the offer will be primary shares. BTG Pactual is the lead manager, to be joined by additional banks. Brazil Pharma raised BRL465.75m in its IPO last year, done through Bradesco, BTG, and Morgan Stanley.

Brazilian power company CPFL has filed for the IPO of its CPFL Energias Renovaveis unit, according to regulatory documents. It plans to offer primary shares, as well as secondary shares owned by several investment funds, including those linked to Patria Investimentos and Bradesco. It does not indicate size or timing, though a filing this week sets up a mid-June launch. The market is expecting a deal for at least BRL1bn ($525m), given the issuer’s large funding needs. CPFL plans to use 80% of the funds raised to develop new projects, and the remainder for acquisitions. Bank of America Merrill Lynch and Itau are global coordinators, with Morgan Stanley, Bradesco and Banco do Brasil as bookrunners. The unit recorded pro-forma Ebitda of BRL377.5m in 2011. It has 46 small hydroelectric, biomass and wind generation projects in operation, with 850 megawatts of capacity. In addition, it has 30 projects under construction, totaling 885 megawatts, and 39 in development, totaling 3,092 megawatts. ECM bankers expect several filings in Brazil in the coming weeks, in order to price deals before the July-August holiday season.

Brazil’s Vix Logistica has filed for an IPO, according to regulatory documents. The transportation and fleet rental specialist plans to sell primary shares, as well as secondary shares owned by the controlling Aguia Branca group. It does not indicate size or timing, though a filing this week implies a mid-June launch, and ECM bankers familiar with the issuer expect a deal of less than BRL500m ($263m). It is raising funds mostly for organic growth, and also to acquire real estate and for working capital. Vix booked BRL152m in Ebitda in 2011, and BRL154m in 2010. Banco do Brasil, Bradesco, BTG Pactual, Credit Suisse and Itau are managing the sale.

Shareholders of troubled Brazilian oil services company Lupatech have approved a BRL700m ($363m) capitalization plan, it says. Lupatech is to issue 87.5m-175m shares to raise BRL300m-BRL700m. Brazilian development bank BNDES and Petros, the employee pension fund of Brazil’s oil company Petrobras, in April agreed to put up BRL300m of the total capital sought, with the remainder to come from other shareholders, at BRL4.00 a share. Lupatech shares closed Monday at BRL4.15.