Restaurateur Set for IPO

Brazil’s International Meal Company (IMC) is scheduled to price an IPO today, expected at more than BRL400m. The restaurant operator, which first tried to go public in 2009, plans to sell 22.2m primary and 8.3m secondary shares at BRL13.50-BRL16.50 each. The deal would raise BRL458m if done at the midpoint. A 15% greenshoe and 20% hot issue are also possible. IMC will aim to lift hopes for Brazilian issuers, which have a large pipeline but a wobbly track record with new issuance in 2011. “They are in better shape now than in 2009,” says a Sao Paulo-based portfolio manager who looked at IMC both in 2009 and in its recent road show. An injection in 2010 from Singapore’s GIC and British Colombia Investment Management, which took an 18% stake between them, has helped lower leverage and improve operating numbers, he says. The selling shareholder in the secondary portion is the Advent International-controlled FIP Brasil Empreendimentos fund, which could see its 99% position drop to as low as 51%, according to regulatory filings. IMC, operator of the Frango Assado and Viena chains, is raising funds for expansion, improving existing locations, and repaying debt. BTG, Bradesco, Credit Suisse, Itau and Santander are managing the deal.