Brazilian Developer Readies Float

As Brazil’s primary equity comeback delves deeper into small and mid-caps, real estate company Direcional Engenharia has registered to issue an IPO. Direcional has hired Santander to lead and Itau and Morgan Stanley as coordinators, but has not set a date or target volume. It plans to use proceeds to acquire land, develop projects and for working capital. Direcional is based in Minas Gerais state, and operates in the southeast and northern regions of Brazil. In 2008, Direcional sold a 25% stake to Tarpon Investment Group for BRL250m. Brazilian IT outsourcer Tivit is set to test appetite for Brazilian small caps with an $200m-$300m IPO expected in September or October.