Brazilian Furniture Maker Launches IPO

Unicasa Industria de Moveis has commenced investor meetings ahead of an April 25 IPO targeting BRL502m-BRL623m ($274m-$340m). The Brazilian furniture manufacturer has filed to sell 9.1m primary shares, as well as 17.3m secondary shares held by controller Alexandre Bartelle and members of the Zietolie family. A BRL16.50-BRL20.50 price range indicates a BRL623m deal at the top of the range, assuming the exercise of a 15% all-secondary share greenshoe. Unicasa, which through its Dell Anno, Favorita, New and Telesul brands targets all levels of the Brazilian income ladder, is raising funds for expansion, particularly in products aimed at the country’s C class. A portion of the primary proceeds would also be used to pay a dividend to shareholders, according to the filing. Unicasa claims to be Brazil’s sector leader in terms of gross revenue – BRL402m in 2011 – and that it has the potential to open 566 new stores throughout Brazil, including 457 for its New brand targeting the C class. The issuer, founded in 1985 and based in Bento Goncalves in the state of Rio Grande do Sul, posted BRL80.4m in Ebitda in 2011, up from BRL72.9m in 2010. BTG Pactual, Itau and Santander are managing the sale. Unicasa puts itself on the calendar at the end of what will be a busy 2 weeks in Brazilian equity that perhaps sets the market’s tone for the remainder of the year. Health insurance provider Qualicorp is to hold a BRL600m follow-on April 17, followed by the BRL400m IPO of fleet outsourcing agency Locamerica April 18, and a BRL1.2bn follow-on from pulp producer Fibria April 19. The BRL3bn-plus IPO from BTG Pactual comes April 24, followed by Unicasa.