Locamerica Readies IPO

Brazilian vehicle fleet rental company Locamerica is planning an IPO to raise more than BRL200m ($118m). The issuer plans a BRL200m primary share portion, and Banco Votarntim’s BV Empreendimentos e Participacoes private equity fund will sell 75% of its holdings, in a secondary portion, expected to be at least as big as the primary portion, indicating a minimum BRL400m size. Locamerica does not give an estimation of the total size and the timing. It plans to use 60% of the proceeds for expanding its fleet and the remainder for working capital. Banco do Brasil, Banco Votorantim, Bank of America Merrill Lynch, BTG Pactual and Itau are managing the sale. It is expected to file shortly, and join a pack of what bankers say is as many as 10 upcoming Brazilian equity sales. The group, aiming for April or May pricings if conditions hold, may include IPOs from BTG Pactual, Seabras, and Isolux and follow-ons from Taesa and Qualicorp. Travel agency CVC has let its IPO filing from late last year run out, according to the CVM, but sources close to the deal insist the company still plans to resubmit and proceed with a sale.