30 de septiembre de 2014 / 17:09 / en 3 años

UPDATE 1-Ouro Fino aims to complete first Brazilian IPO this year

(Recasts to add details on offering, context, background throughout)

By Guillermo Parra-Bernal

SAO PAULO, Sept 30 (Reuters) - Ouro Fino Saúde Animal Participações SA, Brazil’s third-largest veterinary products maker, seeks to raise up to 363.5 million reais ($148 million) from investors in an initial public offering slated to price next month, which could be the first IPO in the country this year.

The Cravinhos, Brazil-based company and some shareholders will offer 13.46 million shares priced between 26 reais and 27 reais each, a securities filing said on Tuesday. Ouro Fino estimates that almost 45 percent of its shares will be publicly traded should an extra 4.7 million shares be sold via additional and supplementary allotments.

The IPO is set to price as early as Oct. 17, between the first and second rounds of Brazil’s most unpredictable presidential election in 12 years. Regardless of how the race plays out, a banker involved in the deal told Reuters on Tuesday that “there is no turning back.”

Growing interest in the Ouro Fino deal comes as JBS SA , the world’s largest meatpacker, put off an IPO of its pork, poultry and food-processing operations in Brazil earlier this month. JBS and banks were wary that volatility stemming from the election could lead to significant pricing discounts, two sources told Reuters.

The Bovespa stock index, which jumped in August, has fallen 12 percent since the start of the month, as President Dilma Rousseff overtook opposition candidate Marina Silva, an environmentalist who has embraced pro-market policies, in recent polls.


Ouro Fino has hired the investment banking units of JPMorgan Chase & Co, Itaú Unibanco Holding SA, Banco Bradesco SA and Banco do Brasil SA to manage the IPO.

The last time a Brazilian company listed shares on the São Paulo Stock Exchange was in December, when travel agency CVC Brasil Operadora de Turismo SA raised 540 million reais. This year, IPOs in Brazil are likely to have their worst year in at least a decade.

Under terms of the transaction, Ouro Fino plans to offer as many as 1.923 million common shares in a primary offering, while a number of shareholders including BNDES Participações SA and controlling partners Norival Bonamichi and Jardel Massari will tender 11.54 million shares in a secondary offering.

In a primary offering, a company raises money from an IPO for its own use. A secondary offering allows shareholders to cash out from their investment in the company being listed.

$1 = 2.4510 Brazilian reais Reporting by Guillermo Parra-Bernal; Editing by Leslie Adler

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