Brazil Pharma Defines FO

Brazil Pharma plans to begin investor meetings June 4 for an approximately BRL600m ($306m) equity follow-on, ahead of a June 21 pricing, it says. The retail pharmaceutical company plans to sell 45m primary shares, and 7m secondary shares owned by members of the Silveira family. This implies a BRL628m sale, based on Wednesday’s BRL10.51 close, assuming a 15% greenshoe. A 20% hot issue is also available. Half of the primary proceeds would go to strengthening the issuer’s capital structure, 40% to new acquisitions, and the remainder to making improvements to existing operations. BTG Pactual, Bradesco and Citi are managing. Brazil Pharma raised BRL465.75m in its IPO last year, done through Bradesco, BTG, and Morgan Stanley.