Pague Menos Readies IPO

Brazilian pharmacy chain Pague Menos has registered for an IPO, it says. It does not give the timing or size of the transaction, to be lead by Banco do Brasil, Credit Suisse, Itau and Santander. The sale includes both primary shares and secondary shares to be sold by members of the founding De Queiros family, and is expected to raise as much as BRL500m ($253m). The drugstore plans to spend 90% of the proceeds on opening new stores, and 10% to build distribution centers. The retailer founded in 1981 posted BRL232.2m in Ebitda in 2011, up from BRL144.5m in 2010. The company is also undergoing a BRL260m ($130m) local bond sale. A planned 2016 debenture pays the DI plus 1.19%. Proceeds are marked for working capital and improving the issuer’s debt profile. Banco do Brasil is managing the sale, done under the rule 476 restricted format.