Travel Agency IPO Books Less than Expected

CVC Brasil Operadora e Agencia de Viagens has priced a BRL621m ($236m) IPO and brought yet another Brazilian debut below the bottom of the range. The 38.8m secondary shares priced at BRL16.00 each, according to the CVM, versus a BRL18.00-BRL22.00 range. The total includes a 15% greenshoe. The transaction should represent about 30% of the company. US private equity firm Carlyle, invested in CVC since 2009, is selling 64% of the shares on offer, with co-founder Guilherme Paulus selling almost all of the remainder. Bank of America Merrill Lynch, BTG Pactual, Itau, JPMorgan and Morgan Stanley managed the transaction, which represents CVC’s second attempt at an IPO after a 2011 filing. Fellow Brazilian Via Varejo is scheduled to hold a follow-on next week, to likely close out the Brazilian ECM calendar for 2013.