Oil, Builders and Burgers: A Guide to Brazil’s Equity Deals Boom

(Bloomberg) -- Investors looking to pick up Brazilian stocks will have a once in a decade opportunity in the coming weeks.

Thanks to the government’s efforts to shed assets and a rush to stocks amid a hunt for returns, markets will see 39.5 billion reais ($9.3 billion) in share sales in the coming weeks, including the biggest offer since 2010.

Development bank BNDES is leading the charge, unloading a stake worth almost 24 billion reais in Petrobras, as the state-run oil producer is known. It’s also promised to sell shares of meatpacker JBS SA.

The deal bonanza has banks from Santander Brasil SA to Bank of America Corp forecasting 2020 will be the best year on record for equity offerings in Brazil. Credit Suisse Group AG’s Brazil head Jose Olympio said the year could tally 200 billion reais in equity deals.

“The pipeline is very welcome, especially at a time when migration to equities from fixed-income products is strong,” said Frederico Sampaio, the chief investment officer at Franklin Templeton’s Brazil unit.

Oil, Builders and Burgers: A Guide to Brazil’s Equity Deals Boom

Here’s the list of upcoming deals:

Mitre Realty

Middle-income homebuilder Mitre filed for an IPO at a time when Brazil’s real-estate sector heats up, with economists saying it will be one of the drivers of this year’s expected economic rebound. The company and shareholder Jorge Mitre are selling shares.

  • Estimated size: Based on the indicative price range (between 14.30 reais and 19.30 reais), offer could raise as much as 2.04 billion reais
  • Expected pricing: Feb. 3
  • Link to the prospectus


Web-services provider Locaweb filed for an IPO where both the company and some of its owners are selling shares. Private equity firm Silver Lake, which announced an investment in the company back in 2010, is planning to unload its entire stake.

  • Estimated size: Based on the indicative price range (between 14.25 reais and 17.25 reais), offer could raise as much as 1.40 billion reais
  • Expected pricing: Feb. 4
  • Link to the prospectus


Brazil’s BNDES is unloading its voting stock in Petrobras, a jumbo deal that could be the biggest since 2010 -- breaking a record held by Petrobras itself. The state lender has a stake of about 10%, which it could completely divest in the sale, which will be conducted in Brazil and in the U.S.

  • Estimated size: Based on the Jan. 20 price of 31.98 reais per share, total deal (including additional allotment) could raise as much as 23.48 billion reais
  • Expected pricing date: Feb. 5
  • Link to the prospectus

Moura Dubeaux Engenharia

Another homebuilder looking to go public, Moura’s businesses are concentrated in Brazil’s Northeast. The firm is selling shares, using proceeds to reduce leverage and purchase land.

  • Estimated size: Based on the indicative prince range (between 17 reais and 21 reais), offer could raise as much as 1.45 billion reais
  • Expected pricing: Feb. 10
  • Link to the prospectus

Cogna Educacao

Cogna, the education company formerly known as Kroton, is holding a primary equity offering. Proceeds will be used for acquisitions of higher-education firms and optimization of the company’s capital structure.

  • Estimated size: Based on the Jan. 31 price of 11.62 reais per share, total deal (including hot issue) could raise as much as 2.7 billion reais
  • Expected pricing: Feb. 11
  • Link to the prospectus

Priner Servicos Industriais

In one of the smallest initial public offerings on record in Brazil, Priner and one of its owners are selling shares of the firm, which provides services for oil, gas and mining companies.

  • Estimated size: Based on the indicative prince range (between 10 reais and 13 reais), offer could raise as much as 384 million reais
  • Expected pricing: Feb. 13
  • Link to the prospectus

Other expected sales

Banco BV

Banco BV, which was formerly known as Banco Votorantim, is preparing an initial public offering which is likely to have primary and secondary components. The lender is jointly owned by Banco do Brasil and the billionaire Ermirio de Moraes family, which are both planning to sell stakes of at least 2 billion reais each, newspaper O Estado de S. Paulo reported.

BR Distribuidora

Petrobras said it’s studying divesting further in its fuel distribution unit known as BR Distribuidora. It owns 37.5% of the firm, after selling a controlling stake last year.

Caixa subsidiaries

Caixa Economica Federal, a state-owned Brazilian lender, is planning IPOs for two businesses this year: its insurance and card units. The insurance deal is expected by April and Caixa CEO Pedro Guimaraes said he hopes it will be similar in size to BB Seguridade, Banco do Brasil’s insurance unit which raised 11.5 billion reais when it went public in 2013.

Celulose Irani

The pulp company, which is based in the Southern state of Rio Grande do Sul, said it’s studying a potential share offering and hired BTG Pactual, Credit Suisse and XP Investimentos.


BNDES will likely sell part of its 21.3% stake in JBS, the world’s biggest meat supplier. Bruno Boetger, an executive director at Bradesco -- which is one of the banks tapped for the deal -- estimates it at around 8 billion reais.


Burger chain Madero is seeking about 3 billion reais with an IPO in the U.S. in the third quarter of 2020, the company’s founder Junior Durski said in an interview.

Parana Banco

After a tender offer in 2017, the Brazilian lender Parana Banco has plans for going public again. The firm is considering a potential initial public offering of units, according to a filing.


Vamos, a subsidiary of logistics company JSL, canceled plans for an IPO in 2019 citing market conditions. Almost one year later, shareholders approved a primary and secondary public offering. Size of the share sale hasn’t been decided yet, but BTG Pactual will lead the IPO.


Other than its own share offer, education company Cogna is studying a potential U.S. IPO of shares of subsidiary Vasta, which offers K-12 education products.

©2020 Bloomberg L.P.

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