Brasil Travel Launches IPO

Brasil Travel Turismo e Participacoes has launched an IPO that could reach BRL1.21bn ($683m), setting a February 8 pricing date. The holdco formed in March 2011 for 35 companies involved in travel-related businesses plans to sell 170,000 primary shares and 466,500 secondary shares at BRL1,250-BRL1,650 each, according to regulatory documents. This would indicate a BRL1.21bn total size if priced at the top of the range, or BRL915m at the low end, assuming the use of a 15% greenshoe. The secondary shares are being sold by the founders’ holding vehicle, which is owned by ex-BTG Pactual partner Pedro Guimaraes, the Sette family and Jose Marcilio Nunes. Brasil Travel plans to use the primary proceeds to grow in Brazil and in other countries in LatAm, with about 85% of the funds to be spent on acquisitions. The deal is expected to leave Brasil Travel with a 40% free float. The issuer comprises companies spread throughout Brazil, which together posted BRL137m in Ebitda in 2010, and is headed by Paulo Castello Branco, a former VP of Brazilian airline TAM, and chaired by Guimaraes. Barclays, Credit Suisse, Flow Corretora and Santander are managing the sale. The deal sneaks ahead of a BRL1.44bn IPO from oil services provider Seabras, which had announced Monday a February 9 pricing. Fellow travel services provider CVC is also expected with an IPO in the first part of 2012. Outside of Brazil, Bancolombia’s $885m-equivalent follow-on is scheduled to close this week, and Peru’s Cementos Pacasmayo will debut its ADRs February 7, raising up to $300m.