Cement Liz Defines IPO

Cementos Liz is aiming to raise more than BRL600m in its IPO, and is targeting March 31 for the pricing, it says. The Brazilian cement maker plans to offer 47.7m primary shares, at BRL10-BRL13 each. A 15% greenshoe and 20% hot issue are also possible. The deal would raise BRL630m if done at the BRL11.50 midpoint and the greenshoe is exercised. Marketing was scheduled to begin Monday, with pricing March 31. The cement producer, which has operations in the states of Sao Paulo and Minas Gerais, says it is raising funds for expansion ahead of increased construction needs in anticipation of the 2104 World Cup and 2016 Olympics, and plans to use proceeds to improve and expand its plant and pay down debt. Liz recorded Ebitda of BRL79.7m in 2010, up from BRL49.8m in 2009. It is 100% owned by Tracao, who could see its stake reduced to as little as 66.5%, according to regulatory documents. BTG, Itau and JPMorgan are managing the sale.