BR Properties Defines IPO Plan

Commercial property manager BR Properties has updated plans to go public and pinned down a pricing date of March 4. The company, whose main investors include private equity company GP Investments, says it plans to sell 57.5m primary shares and 14.4m secondary shares at BRL14.00-BRL18.00. As such, the base offering, which doesn’t included additional shares, could yield BRL1.15bn. The company also reserves the right to increase size via a 15% hot issue of 10.8m shares, and it will give underwriters the chance to sell an additional 17% greenshoe of 12.2m shares. All told, the transaction could raise up to BRL1.5bn if priced at the midpoint, a sizable trade compared to the other 5 issuers in the Brazil IPO pipeline. BR Properties first tried an IPO in October 2007, but market conditions derailed the deal and the company raised the equity it sought through private raises. Selling shareholders in the upcoming offering include GP, funds belonging to Tudor, Dynamo, Orsay Investments, RIT Capital Partners, Prima Investments, Osprey Funds, and individuals. The deal is being led by an unusually high number of banks, even for its size: Itau BBA, the global coordinator, and joint-leads Bradesco BBI, Goldman Sachs, Safra and Santander.