RIO DE JANEIRO, BRAZIL – The joint venture between Royal Dutch Shell and Cosan, Raízen is seeking a valuation of R$70 (US$13.5) billion in its initial public offering (IPO), said sources with knowledge of the matter.
The valuation could range from R$60 billion to R$80 billion depending on demand, they added. Active in fuel distribution and sugar and ethanol production, Raízen decided to reduce the offer to about R$5 billion from the R$12 billion initially planned, sources said on condition of anonymity.
Raízen did not immediately respond to a request for comment.
The company plans to present a new prospectus to the CVM (Brazil’s Securities and Exchange Commission) later this week. In preliminary meetings with investors, a process known as ‘pilot fishing,’ the book was virtually fully covered, sources said.
BTG Pactual, Citi, Bank of America, Credit Suisse, JPMorgan, Morgan Stanley, Bradesco BBI, Santander Brasil, XP Investimentos, HSBC, Safra and Scotiabank are coordinating the IPO.
Source: Exame
Live Company IntelligenceRaízen S.A. — the full investor dossier
Valuation & profitability
Price & risk
$0.2352-wk high
$1.42
Revenue trend · 6y
Ownership
Dividend
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