Brazil Travel IPO Heard Close to Launch

An IPO from Brazil Travel Turismo e Participacoes could launch as soon as this month if market conditions hold up, according to bankers and investors following the process. New equity issuance, particularly IPOs, remain a tricky proposition, but low volatility so far in 2012 has encouraged the larger and more solid members of a large backlog to consider stepping forward. Brasil Travel, a holdco formed in March 2011 for 35 companies involved in travel-related businesses, filed papers last month for a primary and secondary share offering expected to be about BRL500m ($278m). Investors say the main selling points would be the industry, and the leadership of Paulo Castello Branco, a former VP of Brazilian airline TAM, and ex-BTG Pactual partner Pedro Guimaraes. Barclays, Credit Suisse and Flow Corretora are managing the sale. Also towards the front of the line is fellow travel agency CVC, set to IPO in an all-secondary share deal representing a selldown of the Carlyle Group’s position. The markets are also expecting follow-ons from larger Brazilian issuers to get the market moving.