New York Times DealBook June 01 2013
SÃO PAULO, Brazil — Brazil’s largest cement producer, Votorantim Cimentos, is planning to raise as much as $4.8 billion in what would be one of the largest initial public offerings worldwide this year.
The move is a positive sign for Brazil as the country’s government and private sector have been trying to encourage more financing through the public markets.
The company filed a preliminary prospectus on Friday, saying it would offer up to 540 million units, priced at 16 to 19 reais a share. If all the units were sold at the maximum price, the company would raise 10.26 billion reais, or $4.8 billion.
After a weak 2012, in which only three Brazilian companies held I.P.O.’s, the country’s capital markets are recovering. Six public offerings have been held in Brazil in 2013. According to Thomson Reuters, the largest global I.P.O. was also in Brazil, when the insurance giant BB Seguridade raised $5.74 billion at the end of April. If successful, Votorantim Cimentos’s public offering would rank as the second-largest globally so far this year.
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Brazilian Cement Producer Plans $4.8 Billion I.P.O.
