Cosan Readies $2bn NYSE Listing

Cosan, Brazil’s largest sugarcane grower and ethanol producer, announced Monday through an SEC filing, plans to issue up to $2bn in shares on the New York Stock Exchange. The Bovespa-listed company is applying for a US ticker listing and will also list Brazilian depository receipts on the Bovespa. A majority of the proceeds are being used to expand greenfield operations in Brazil, build out existing operations, purchase equipment and improve operations. Last week, an executive at Archer Daniels Midland told the WSJ he didn’t discount the possibility of acquiring Cosan, a plan that may now be hampered by the large float. Cosan listed its shares on the Bovespa in Nov. 2005, and has issued over $1bn bonds across four issuances since 2004 using Morgan Stanley and Credit Suisse. The $2bn share listing is being managed by Credit Suisse, Goldman Sachs and Morgan Stanley.