Pharmacy Moves toward Bovespa

Brazilian pharmacy chain Pague Menos has registered to become a public company, marking the first step in the IPO process. The northeast Brazil-based drug store had been among those tipped to IPO this year. It is looking to raise funds for expansion in a sector that is growing along with the rising purchasing power of the middle class. There is no timetable for the sale yet, with a company official saying that it is best to wait until market conditions improve and international investor appetite return. Barclays, Banco do Brasil, Credit Suisse and Itau have been hired to manage the process, the official says. As the company wants to list on the Novo Mercado, the float will be at least 25%, though the exact size remains to be determined. In August, the Brazilian drug retail sector saw mergers announced that would create the top two companies in the space – Drogasil with Droga Raia, and Drogaria Sao Paulo with Drogaria Pacheco.