Market Awaits Brasil Travel IPO Pricing

Brasil Travel Turismo e Participacoes’ had still not priced its initial public offering by late Wednesday night as markets awaited what could be the first Brazilian IPO of 2012. The holdco for a nationwide group of travel-related businesses was trying to sell 170,000 primary shares and 466,500 secondary shares at a BRL1,250-BRL1,650 range. Such a deal would raise 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. Bankers on the deal did not return requests for comment. Though the management boasts ex-BTG Pactual partner Pedro Guimaraes as chairman and is headed by Paulo Castello Branco, a former VP of Brazilian airline TAM, investors were hesitant about the company’s short operating history. Some of the 35 member businesses have been in operation for years, but they were only assembled into Brasil Travel in March 2011. The company 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 secondary shares are sold by the founders’ holding vehicle, owned by Guimaraes, the Sette family and Jose Marcilio Nunes. The deal is expected to leave Brasil Travel with a 40% free float. Barclays, Credit Suisse, Flow Corretora and Santander are managing the sale.