June 12, 2020 / 3:04 PM / 24 days ago

Brazilian homebuilder You resumes IPO plans despite COVID-19 hit

SAO PAULO, June 12 (Reuters) - Brazilian homebuilder You Inc Incorporadora e Participações S.A. has resumed plans for an initial public offering on the Sao Paulo stock exchange after giving up the idea earlier this year due to the coronavirus outbreak.

You Inc filed the IPO request with Brazil’s securities exchange regulator CVM late on Wednesday. The company aims to sell new shares and existing shares owned by its chief executive and founder Abrão Muszkat, according to its preliminary IPO prospectus.

The homebuilder said proceedings will be used to continue housing projects currently under development and with lower execution risks. You Inc has 13 construction sites, all still open despite the pandemic.

“Since the beginning of the COVID-19 pandemic, the company has taken preventive measures including, but not limited to, reducing expenses and negotiating payment terms with suppliers,” You Inc said.

In May, the company’s gross sales hit 78% of the amount expected in its budget issued last December, compared with 47% in April.

The investment banking units of Banco BTG Pactual SA and Banco Bradesco SA, as well as broker XP Inc. are managing the offering.

The preliminary prospectus did not disclose the expected size of the offering, nor its pricing date. (Reporting by Gabriela Mello; Editing by Dan Grebler)

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