Brazilian Clothier Launches IPO

Le Lis Blanc Deux, a Brazilian manufacturer of high-end clothing, launched Monday a roadshow for an IPO expected to raise around $180m. The presentations began in Sao Paulo, and will move to Europe and the US. Le Lis Blanc Deux hopes to sell 26m shares at BRL10.50-BRL12.50 a share. The IPO is surprisingly small, but the issuer apparently wanted to press ahead with the deal and test the waters, say executives close to the process. Small IPOs have fared poorly in recent memory, as investors have demonstrated a strong aversion to low-liquidity stocks. Le Lis Blanc Deux may end up being the third IPO of the year for LatAm. The first was Nutriplant, which debuted on the Bovespa’s small cap index with an $11m IPO. The second may be Hypermarcas, the Brazilian retailer that is on the road with an IPO set to price next week. The company is looking to offer 36m shares at BRL20.50-BRL24.50. Merrill and Citi are leading Hypermarcas, while Merrill and Morgan Stanley have joint books on Le Lis Blanc Deux.