Alliar Files for IPO to End 14-Month Drought in Brazil Offerings

  • Medical diagnostics company said it intends to issue shares
  • While stocks have rallied, last IPO in Brazil was in June 2015

Medical diagnostics company Alliar Medicos a Frente said it intends to sell shares in an initial public offering, potentially ending a 14-month IPO drought for Brazilian companies.

The company based in Belo Horizonte filed a preliminary prospectus Tuesday to sell shares in a primary and secondary offering. Banco Itau BBA SA is the lead coordinator, according to the filing to regulator CVM. Banco Santander Brasil SA and Bank of America Merrill Lynch are also coordinating the offer, according to the document.

While Brazilian stocks have surged this year, rallying 65 percent in dollar terms as commodities rebounded and on bets a political change will help get the economy out of a two-year recession, companies have refrained from coming to the market. The last IPO was carried out by insurance broker FPC Par Corretora de Seguros SA, in a 602.8 million-real ($185 million) deal in June 2015.

Last week, Morgan Stanley said Brazil will probably have about five equity offerings through the end of this year, likely from firms that are already public. Christian Egan, deputy head of corporate and investment banking at Banco Itau BBA SA, said in a meeting with reporters and other bank executives the same week that the country could see as much as 10 billion reais in 10 equity offerings during the second half of this year, including IPOs.

Alliar’s controlling holders include funds owned by Patria Investmentos SA, a Brazilian private-equity firm who has New York-based Blackstone Group LP among its investors. The company, which was created in 2011, has offices in 41 cities across 10 Brazilian states, offering image diagnostics and clinical analysis. Pro-forma unaudited revenue totaled 460.1 million reais in the first half of the year, according to the IPO prospectus.

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