Tupy Sets FO Target

Brazilian Iron parts maker Tupy has launched an equity follow-on targeting more than BRL600m ($270m) at an October 16 pricing, in what will in many ways serve as a “re-IPO” for the issuer. Tupy is selling 26m primary shares, and BNDESPar 5.2m secondary shares, according to an offering document, meaning a BRL685m deal based on Wednesday’s BRL19.10 closing price if a 15% greenshoe is included. Shares were at BRL19.45 when the deal was re-filed in August. ECM bankers note that the shares are in relatively few hands and do not trade frequently – one of the problems that the follow-on sale looks to correct. Tupy is looking for funds to invest in expansion and in projects that will help lower its costs. Banco do Brasil, Brasil Plural, BTG Pactual, Citi and Itau are managing the sale, with Brasil Plural added since a first attempt at a deal earlier this year. The auto parts specialist operates in Brazil and Mexico, and booked BRL337m in Ebitda in 2012. Elsewhere in the Brazilian pipeline, vehicle services company Sascar is expected to launch as soon as this week, perhaps followed by peer Unidas and education companies Grupo Ser and Anima Educacao.