Aug. 11 (Bloomberg) -- Brazilian firearms maker Forjas Taurus SA is preparing to sell shares to finance investments, Chief Executive Officer Luis Fernando Costa Estima said.
“We want to leave the company prepared for when the market is right,” the executive said in an Aug. 2 interview from Porto Alegre. The offer will only happen when the company has an investment plan that requires attracting funds from the market, Estima said. The firm’s logic “is to be prepared for this,” Estima said. “Today, we are not.”
Taurus is one of the world’s three largest makers of light arms, according to its website. The company had sales of 170 million reais ($97 million) in the second quarter, 5.9 percent lower than in the same period last year. Its profit rose 7.9 percent to 19 million reais during the quarter, according to data compiled by Bloomberg.
Estima, 74, who has been at Taurus for 39 years, contracted consultants Galeazzi & Associados in April to prepare his succession plan.
“We are at nearly 1 billion reais of sales annually and want to pave the way for the company’s continuity and sustainability,” he said, adding that the only idea out of the question is selling assets.
Fifteen companies have conducted public share offerings so far this year in Brazil, raising 22.5 billion reais, according to the BM&FBovespa website. According to the financial regulator, known as CVM, there are a further eight pending.
Forjas Taurus dropped 0.6 percent to 4.90 reais in Sao Paulo trading at 11:09 a.m. New York time.
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