Petrobras approves BR Distribuidora IPO
The Brazilian energy company’s board gives its fuel distribution unit the green light for a secondary equity offering
Petrobras’ board has approved a
potential all-secondary IPO for its service station unit BR
Distribuidora with proceeds going directly to the Brazilian
BR Distribuidora will likely list the shares on
Brazil’s Novo Mercado, a segment of the stock
exchange governed under stricter rules. Any shares trading on
the Novo Mercado must have voting rights.
The state-owned firm last month
reignited talk of a potential IPO for its fuel distributor,
almost two years after UBS valued BR Distribuidora at nearly
Petrobras has also explored the idea of
selling a majority stake in BR Distribuidora, but faced a
roadblock in December when a court order barred a potential
A federal court lifted the injunction in May,
allowing Petrobras to move ahead with its $21bn asset
Petrobras' board had planned an initial public
offering of BR Distribuidora shares in October 2015. But it
suspended the plan due to complex market conditions
and FX volatility.
Bank of America Merrill Lynch, BB Investimentos,
Bradesco, BTG Pactual, Citi, Itau BBA and Santander were
understood to be coordinating the original IPO.