Brazilian Car Dealer Plans IPO

Used car dealer AutoBrasil has filed for an IPO, according to a prospectus, to raise funds for expansion. The issuer aims to begin investor meetings September 25 and is targeting an October 16 pricing. The Brazilian does not yet indicate the size of the sale, which includes both a primary and secondary portion. BTG Pactual, Credit Suisse and Itau have been hired to manage. Formed this year from a group of dealerships that together brought in BRL2.59bn in sales in 2011, AutoBrasil is in 15 Brazilian states and has a 1.2% market share. It plans to use the proceeds for working capital and to open new stores. A private equity fund linked to BTG owns 11% of AutoBrasil, and is among the selling shareholders in the secondary portion.