Shell-Cosan Venture Is Said to Seek $13.5 Billion IPO Valuation

Raizen SA, a joint venture between Royal Dutch Shell Plc and Brazil conglomerate Cosan SA, is seeking a valuation of about 70 billion reais ($13.5 billion) in its upcoming initial public offering, people familiar with the matter said.

The firm, Brazil’s largest sugar and ethanol producer, plans to sell a stake of about 10% in the IPO to raise roughly 6 billion reais, according to the people, who asked not to be named as the information isn’t public yet. If the size is confirmed, it would be the biggest IPO in Brazil this year, according to data compiled by Bloomberg.

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Raizen, which is also a major fuel distributor in Latin America’s largest economy, could launch the offer in the coming days, the people said, with pricing expected in late July or early August. Talks are ongoing and the company could still back out of the deal, they added.

Raizen didn’t immediately respond to an e-mail and a phone call seeking comment.

Last month, Raizen disclosed preliminary information for its IPO without providing details such as the volume of shares to be sold or the marketed range. In earlier talks with investors, the firm was hoping to raise as much as 10 billion reais with the offering, the people said.

Banks running the deal are BTG Pactual, Citigroup, Bank of America, Credit Suisse, Bradesco BBI, JPMorgan, Santander, XP, HSBC, Morgan Stanley, Safra and Scotiabank.

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