IMC Serves IPO at Bottom of Range

Brazil’s International Meal Company (IMC) has priced a BRL474.2m IPO, at the bottom of its range, as Brazilian ECM issuance continues its recent struggle. The quick casual restaurant operator priced 24.5m primary and 10.6m secondary shares at BRL13.50 each, according to the CVM, compared to a BRL13.50-BRL16.50 range. The share total includes the exercise of a 15% greenshoe. The selling shareholder in the secondary portion is the FIP Brasil Empreendimentos fund created and majority-owned by private equity firm Advent International. IMC first tried to go public in 2009, and has since raised funds privately from investors including Singapore’s GIC and British Colombia Investment Management, which investors say has strengthened it. The 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 managed the deal. The deal comes after a BRL100m IPO from CAB Ambiental was pulled, and February IPOs from Autometal and Sonae Sierra came below their ranges. A huge pipeline awaits, including six filed and awaiting launch.