T4F Set for IPO

Brazil’s T4F Entretenimento is scheduled to price a BRL500m-BRL600m IPO today. T4F plans to sell 11.7m primary shares and 17.6m secondary shares at BRL14.50-BRL18.50 each. Such a deal would bring BRL483m at the BRL16.50 midpoint. A 15% greenshoe is also possible, which would bring the total to BRL623m if priced at the top of the range. The event promoter and ticket broker would hope to fare better than other recent Brazilian stock debut attempts, with many having priced below their price range and Cimentos Liz postponing its offering last week. “This appears to be generating a bit more interest than some of the other [small IPOs in Brazil],” says an analyst at a Rio de Janeiro-based asset manager. T4F, which stands for “Time for Fun,” has operations in Brazil, Chile and Argentina. Controlling shareholder and CEO Fernando Luiz Alterio, Mexican entertainment operator CIE Internacional, and Gavea Investimentos’ GIF II fund are selling shares in the secondary portion. T4F booked BRL95.1m in Ebitda in 2010, up from BRL46.1m in 2009. Bradesco, BTG and Credit Suisse are managing the sale. Cimentos Liz had to pull its IPO last week on weak demand, as investors continue to express bullishness on Brazil in a very selective way.