Manufacturer Reboots Equity Plan

Brazil’s Tupy has restarted plans for an equity follow-on, according to the CVM, after postponing earlier this year a deal expected to raise as much as BRL1bn ($410m). The iron parts manufacturer plans to offer primary shares, as well as secondary shares owned by BNDES and the Previ and Telos pension funds. The exact target size and timing has not been indicated, though a refiling now would have it ready to hit the September-October window if market conditions allow. Banco do Brasil, Brasil Plural, BTG Pactual, Citi and Itau are managing the sale, with Brasil Plural added since the first attempt. Tupy is looking for funds to invest in expansion and in projects that will help lower its costs. The auto parts specialist operates in Brazil and Mexico, and booked BRL337m in Ebitda in 2012. There are several Brazilian deals in the pipeline hoping for a reduction in the volatility seen recently and the negative headlines surrounding Brazil’s economy. Airline Azul postponed its plans earlier this week. Vehicle services companies Ouro Verde, Unidas and Sascar have all filed for IPOs. Other debutants expected to file soon include education companies Grupo Ser, via BTG Pactual, Credit Suisse, Goldman Sachs and Santander, and Anima Educacao, with Bank of America Merrill Lynch and Itau.