Biosev Raises $410 Million in Brazil IPO to Expand, Pay Off DebtStephan Nielsen
Biosev SA, a Louis Dreyfus Holding BV unit in Brazil, has raised as much as 814.4 million reais ($409.8 million) in an initial public offering to fund expansion.
Brazil’s No. 2 sugar-cane processor sold 53.7 million voting shares at 15 reais each and 9.35 million reais of put options, the country’s securities regulator Comissao de Valores Mobiliarios said today on its website.
The Sao Paulo-based company plans to pay down debt, including almost $300 million of bonds issued in 2009 as well as finance new investments, Salim Morsy, an analyst at Bloomberg New Energy Finance, said in an e-mail today. The put options, by allowing investors to sell back their shares at the same price they bought them for plus interest, were meant to ensure a fully subscribed offering, he said.
“Embedding put options in the IPO is a testament to the current dour nature of the Brazilian equity market and the generally gloomy mood of the local sugar-cane industry,” Morsy said.
Biosev, which operates 13 mills in Brazil, plans to boost capacity and may buy or build more plants, according to a prospectus of the sale.
The company planned the IPO for the middle of last year and delayed it in August, citing market conditions.
Banco BTG Pactual, JPMorgan Chase & Co., Banco Bradesco SA, Banco do Brasil SA and Banco Itau BBA SA coordinated the transaction, according to the filing.