Brazilian Educator Set for IPO

Ser Educacional is scheduled to price today an IPO targeting more than BRL700m ($326m), in a deal that should offer the latest test of market appetite for the Brazilian consumer story. The for-profit educator is offering 15.4m primary and 15.4m secondary shares at BRL19.50-BRL23.50 each, according to regulatory documents, meaning a BRL761m deal at the midpoint if a 15% greenshoe is included. The focused on Brazil’s rapidly growing North and Northeast is raising funds for acquisitions and organic growth, and is betting that the sector – one of the strongest in the Brazilian consumer demand picture – can still attract investors that may be skittish about other components of the Brazilian story. The sellers in the secondary portion include founder and controller Janguie Diniz. Ser Educacional claims to be the biggest educator in the two regions, and booked BRL85m in Ebitda in 1H 2013, up from 49m in 1H 2012, and BRL90m in all of 2012, up from BRL56m in 2011. BTG Pactual, Credit Suisse, Goldman Sachs and Santander are managing. Peer Anima Educacao is to follow next week.