Marfrig Joins FO Queue

Brazil’s Marfrig is preparing to raise BRL1.27bn ($626m) in fresh capital through an equity follow-on, it says. The highly indebted meatpacker does not indicate the number of shares to be sold, but plans to raise BRL1.1bn with the option of a 15% greenshoe. Controller MMS and 13% holder BNDESPar are expected to exercise their rights in the offering. “Despite the high dilution, we see the share offering as positive for Marfrig,” Barclays says. The shop sees net debt/Ebitda decreasing to 4.5x from 5.5x after the sale. Marfrig shares closed at BRL10.28 Wednesday. It joins peer Minerva, who is preparing to raise BRL473m in November.