Uruguay Farm Developer Plans IPO

Union Agriculture Group has filed for a US IPO with the SEC, and is targeting an up to $287.5m size. The farmland developer, which acquires underutilized farmland in Uruguay and develops it for resale, is raising funds for further acquisitions. Union does not give an indication of the timing or number of shares to be sold. The issuer has hired Credit Suisse and JPMorgan to manage the sale. Since its founding in 2008, Union has raised funds though private placements totaling $353.3m. Union has acquired 84,670 hectares in Uruguay since 2008, which it estimates is worth $270m, and produces soybeans, wheat, rice, dairy, cattle, sheep and other products such as blueberries and honey. AdecoAgro, a similar play with assets in Brazil, Uruguay and Argentina, raised $314m in a January IPO, after resetting its range. Developer BrasilAgro pulled a planned follow-on in May. The last Uruguayan IPO was NZ Farming Systems’ $82m New Zealand-listed deal in 2006, according to Dealogic.