CAB Ambiental Sets IPO Target

CAB Ambiental, a Brazilian operator of water and sanitation concessions, is aiming to raise about BRL100m in an IPO on the Bovespa Mais, expected to price March 2. Sao Paulo-based CAB, which stands for Companhia de Aguas do Brasil, plans to sell 7.16m shares at a range of BRL11-BRL14, according to an announcement. Such a deal would raise BRL103m if priced at the midpoint and a 15% greenshoe is exercised. A 20% hot issue is also possible. CAB operates 11 concessions and 2 PPP contracts of 16-30 years, in the 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. Banco Safra and Banco do Brasil are managing the sale. The Bovespa Mais is a special section of the Bovespa designed to draw smaller issuers. Companies can list under less stringent volume requirements. March 2 is also the date when restaurant operator International Meal Company Holdings is scheduled to price, and the pair are the next two deals in the Brazilian equity pipeline.