Cetip Set for BRL2bn+ IPO

Brazilian securities clearing house and depository Cetip has filed for an IPO on the Bovespa, following widespread speculation about a jumbo offer. It does not disclose the volume or timing of the sale, though a stake of about 40% is expected to be sold to raise BRL2bn-BRL3bn, according to a banker close to the sale. The deal is expected soon after regulatory approval, since 2Q financials go stale at the end of the month. Cetip has hired Itau BBA, UBS Pactual, Bradesco, Santander and Credit Suisse to lead the operation. Cetip is 70% owned by its member financial institutions, and 30% by private equity fund Advent International, which acquired the stake in March for $171m. Even if it only generates BRL2bn, the equity transaction would be the region’s second largest of the year, after VisaNet’s BRL8.24bn blowout offer in June. Cetip demutualized 2 years ago and considered a number of options including an IPO, but ended up shelving the plan due to global crisis.