Natura Taps Trio for Follow-On

Brazilian cosmetics firm Natura has tapped 3 banks to lead an equity follow-on. The winning trio is understood to be Itau BBA, UBS Pactual and JPMorgan, say Brazil-based executives. Natura does not disclose a potential value for the offering, documents for which have yet to be filed with the CVM. In May 2004, Natura raised the equivalent of $240m through its IPO of 18.9m shares at BRL36.50, led by UBS, Itau BBA and Banco Pactual, with Merrill Lynch, Banco do Brasil and Unibanco as co-managers. Natura shares closed at BRL25.90 Friday, down 4.8%, leaving the company with a market cap of BRL11.1bn. The company’s main shareholders are two entities controlled by the Seabra and Leal families, which hold 28% and 27% of the company’s shares, respectively. Senior Brazil bankers say a pickup in equity issuance is in the cards for H2 from well-known liquid names, as IPO issuers of the past few years return to the markets to replenish their coffers. VisaNet recently filed to issue a $2.5bn-$4.5bn IPO. The deal is expected in June and could be the largest to date.