Batista Shipping Unit Launches IPO

OSX, the startup shipping unit belonging to Eike Batista’s holding company EBX, has squared away details for its upcoming IPO. If priced at the midpoint, the total offering could be worth up to BRL8.68bn, though the base offering not including the additional issuance options would be worth BRL6.43bn. The deal, scheduled to price March 17, is being marketed to qualified institutional buyers only because of the higher risk greenfield nature of the company. The main assets, including a port and shipyard in the south of Brazil, are not even built yet. The base offering is 5.51m shares. A 15% greenshoe of 827,000 units and a hot issue of 1.1m bring the maximum number of shares to be offered to 7.44m. OSX is targeting a price of BRL1,000-BRL1,333, resulting in a midpoint of BRL1,167. The deal is led by Credit Suisse as lead coordinator, Itau BBA as stabilizing agent, Bradesco BBI, BTG Pactual and Morgan Stanley. Also on the offering memorandum at a co-manager level is Barclays, HSBC, Banco Votorantim and XP Investimentos.