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(Bloomberg) — Compass Gas e Energia SA’s shareholders raised 3.2 billion reais ($650 million) in the first initial public offering in Brazil in almost five years.
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Shareholders of the natural gas and energy company sold about 100.9 million shares at 28 reais apiece on Thursday, according to a filing confirming an earlier Bloomberg News report. The pricing was the bottom of the indicative range.
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The total includes the base offer of 89.3 million shares and an additional 11.6 million shares, according to the filing.
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The IPO is the first in Brazil’s stock exchange B3 since 2021, ending a near five-year drought of new listings in Latin America’s largest economy. It comes as foreigners have powered a world-beating rally in local stocks, sending the benchmark Ibovespa index to successive records.
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Compass’ IPO was initially planned for 2020, but was scrapped due to worsening market conditions. Plans were resumed as holder Cosan SA looks to sell assets and reduce leverage as a series of non-profitable bets and high interest rates erode results. Sugar and ethanol producer Raízen SA — a joint-venture between the conglomerate and Shell Plc — is undergoing an out-of-court restructuring.
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Bank of America, through Merrill Lynch, holds the option to exercise a supplementary allotment of 13.4 million shares within 30 days, according to the filing. If fully placed, Cosan will receive 2.52 billion reais, it said in a separate filing.
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The offering was fully secondary, with a group of shareholders selling shares, including Cosan, Atmos and a Banco Bradesco SA unit.
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Banco BTG Pactual SA led the IPO, with Bank of America Corp, Banco Bradesco BBI SA, Citigroup Inc, Itau BBA SA, Banco Santander Brasil SA, JPMorgan Chase & Co, XP Inc, BNP Paribas SA and UBS BB Investment Bank acting as joint coordinators.
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Shares are set to start trading May 11, under the ticker PASS3.
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—With assistance from David Morris.
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(Updates with company’s confirmation starting in first paragraph.)
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English (US)