Brazil E&P Operator Files Float

HRT Participacoes has filed to IPO on the Bovespa, according to regulatory documents. The Brazilian oil and gas operator is looking for funds to develop blocks in Brazil and Africa it has won since entering the E&P space last year. It held 2 private share sales in 2009 to raise BRL479m, according regulatory documents and counts MSD Capital, Perella Weinberg Capital and Senator Investment among shareholders. According to the filing, 75% of the proceeds from the IPO will go to exploration in Brazil’s Solimoes basin, 15% for exploration at offshore blocks in Namibia, 2% for exploration in other Brazilian blocks and 8% for other projects. What became HRT was founded in 2004 as its oil services arm, IPEX, by a group of former Petrobras and ANP executives, and would move enter exploration and production in 2009. HRT gives no information as to the number of shares for sale or the timing. Credit Suisse is global coordinator, with Citi and Goldman Sachs as bookrunners. Several Brazilian issuers are waiting for IPOs or follow-ons, with nothing expected until September. The market awaits a $30bn follow-on from Petrobras, which is expected at some point in September, though if that offer is delayed, smaller equity deals may try to price ahead of it.