Perenco Launches Brazil IPO

Perenco Petroleo e Gas do Brasil Participacoes has launched its IPO, and plans to price the BRL750m-BRL850m ($467m-$529m) transaction July 1. The Brazilian unit of UK-based oil exploration company Perenco plans to sell 0.4m primary shares at BRL1,550-BRL2,000. This would mean a BRL829m sale if done at the BRL1,775 midpoint and a 15% greenshoe is included. A 20% hot issue is also available. Perenco, which operates in 16 countries worldwide, is seeking funds to develop its 5 blocks in the Espirito Santo Basin and acquire additional blocks, according to a prospectus. About a third of the raise will go to acquisitions, including new government auctions. Perenco has been operating in Brazil since 2007. BTG, Itau and Morgan Stanley are managing the sale. Other oil related companies are also in the pipeline or have already come to market. Quieroz Galvao E&P raised a BRL1.52bn IPO in February, and onshore operator PetroReconcavo is awaiting launch of its IPO.