Brazilian ECM Revs Back Up

HRT Participacoes is expected to raise BRL2.0bn-BRL3.0bn from an IPO today, with compatriot Lopes also scheduled to price a follow-on that should raise BRL150m-BRL250m. Oil and gas operator HRT would raise BRL2.62bn if done at the midpoint of a stated BRL1,050-BRL1,350 range and its hot issue and greenshoe are fully exercised. HRT says the transaction will result in at least a 25% float, and raise funds to develop blocks in Brazil and Africa won since entering E&P last year. Credit Suisse is global coordinator, with Citi and Goldman Sachs as bookrunners. The deal offers investors what should be the first of many more opportunities to play Brazilian oil, and may benefit from Repsol’s pulling of a $4bn Brasil IPO that would have likely also arrived this month. Meanwhile, Lopes plans to sell 4.8m shares, plus a possible 15% greenshoe and 20% hot issue. The transaction would raise BRL241m at Wednesday’s BRL37.12 closing price in the event of the full overallotment, and BRL178m without. The issuer expects to spend about BRL50m of the proceeds to purchase a 31% stake in Rio real estate consultancy RV Patrimovil, which would give Lopes control of Patrimovil. The remainder will go to future acquisitions, with Lopes noting it is in discussions with four possible targets. BTG, Goldman and Itau are managing the transaction.