Category: Equity

Brazil’s International Meal Company (IMC) has priced a BRL474.2m IPO, at the bottom of its range, as Brazilian ECM issuance continues its recent struggle. The quick casual restaurant operator priced 24.5m primary and 10.6m secondary shares at BRL13.50 each, according to the CVM, compared to a BRL13.50-BRL16.50 range. The share total includes the exercise of a 15% greenshoe. The selling shareholder in the secondary portion is the FIP Brasil Empreendimentos fund created and majority-owned by private equity firm Advent International. IMC first tried to go public in 2009, and has since raised funds privately from investors including Singapore’s GIC and British Colombia Investment Management, which investors say has strengthened it. The operator of the Frango Assado and Viena chains is raising funds for expansion, improving existing locations, and repaying debt. BTG, Bradesco, Credit Suisse, Itau and Santander managed the deal. The deal comes after a BRL100m IPO from CAB Ambiental was pulled, and February IPOs from Autometal and Sonae Sierra came below their ranges. A huge pipeline awaits, including six filed and awaiting launch.

Brazil’s International Meal Company (IMC) is scheduled to price an IPO today, expected at more than BRL400m. The restaurant operator, which first tried to go public in 2009, plans to sell 22.2m primary and 8.3m secondary shares at BRL13.50-BRL16.50 each. The deal would raise BRL458m if done at the midpoint. A 15% greenshoe and 20% hot issue are also possible. IMC will aim to lift hopes for Brazilian issuers, which have a large pipeline but a wobbly track record with new issuance in 2011. “They are in better shape now than in 2009,” says a Sao Paulo-based portfolio manager who looked at IMC both in 2009 and in its recent road show. An injection in 2010 from Singapore’s GIC and British Colombia Investment Management, which took an 18% stake between them, has helped lower leverage and improve operating numbers, he says. The selling shareholder in the secondary portion is the Advent International-controlled FIP Brasil Empreendimentos fund, which could see its 99% position drop to as low as 51%, according to regulatory filings. IMC, operator of the Frango Assado and Viena chains, is raising funds for expansion, improving existing locations, and repaying debt. BTG, Bradesco, Credit Suisse, Itau and Santander are managing the deal.

CAB Ambiental has opted not to sell shares through an IPO Wednesday, according to a banker on the deal. The operator of water and sanitation concessions had been looking to raise about BRL100m in what would have been just the second company to list on the Bovespa Mais, a special program for small companies. Sao Paulo-based CAB, which stands for Companhia de Aguas do Brasil, had planned to sell 7.16m shares at a range of BRL11-BRL14, but was unwilling to sell at the price investors asked, and will consider other options for fundraising, the banker says. CAB is owned by the Galvao Participacoes conglomerate, and operates 11 concessions and 2 PPP contracts of 16-30 years, in the Sao Paulo, Parana and Mato Grosso states. Banco Safra and Banco do Brasil were managing the sale.

Brazil’s Enesa Participacoes has filed a preliminary prospectus for an IPO. According to securities filings, Itau is listed as the lead coordinator, with Banco Modal, BB Investimentos, BTG Pactual, and Credit Suisse also listed as coordinators. Banco do Brasil, BB Securities, BTG, Credit Suisse, and Itau, are also listed as international placement agents, while Credit Suisse will also be acting as stabilizing agent. The engineer and builder is active in the industrial, energy and infrastructure sectors, and has been expected to come to the Bovespa in the first half of the year. Enesa is known as a contractor for Petrobras, and would be among the first in a long line of Petrobras providers that investors and bankers expect to raise equity to support Petrobras’ pre-salt exploration. Enesa generated BRL103.8m in Ebitda in 2010, up from BRL74.5m in Ebitda the year before.

Brazil’s Magazine Luiza has filed a preliminary prospectus for an IPO. According to securities filings, Itau is listed as the lead coordinator, while Banco Investimentos and BTG Pactual are listed as coordinators. BTG is also listed as the stabilizing agent. According to the filing, the retail chain generated BRL319.9m in Ebitda in 2010, up from BRL64.6m in Ebitda for 2009.