Small-Cap Water Utility Plans IPO

CAB Ambiental, a Brazilian operator of water and sanitation concessions, plans to IPO, according to regulatory documents. It does not indicate the timing of the sale, which will consist of primary shares. CAB operates 11 concessions and 2 PPP contracts of 16-30 years, in Sao Paulo, Parana and Mato Grosso states, serving a total population of 4m. Owned by the Galvao Participacoes conglomerate, CAB posted Ebitda of BRL7.3m in the first 9 months of 2010, compared to BRL3.7m in all of 2009. It has hired Safra to manage the sale.