Hidrovias do Brasil refloats IPO plans

Hidrovias do Brasil refloats IPO plans

Corporate & Sovereign Strategy IPO Equity Capital Markets Brazil

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Brazilian waterways logistics company Hidrovias do Brasil said late Tuesday that it has scheduled a shareholder meeting for August 3 to discuss plans to list shares through an initial public offering (IPO).

Bank of America, BTG Pactual, Citi, Credit Suisse, Itaú BBA, Morgan Stanley and Santander are structuring the potential offer, the company said in a securities filing.

Hidrovias announced an IPO in February and said it could raise as much as BRL1.72bn ($320 million), but it postponed the deal in March due to the "deterioration of the current market situation" caused by the COVID-19 pandemic. 

"There is no decision as to the effective realization of an offer, as well as to its structure and volume, which remain subject to the assessment of market conditions present at the time of the realization of the potential offer," Hidrovias said in the filing on Tuesday.

The company's existing shareholders had planned to sell part of their stakes through a secondary offering and list the company's shares on the Novo Mercado segment of the B3 Stock Exchange in São Paulo.

Hidrovias' shareholders include Pátria Investimentos, Alberta Investment Management Corporation (AIMCo), Blackstone and Temasek along with the International Finance Corporation (IFC) and BNDESPar, the equity investments division of the national development bank BNDES.

The São Paulo-based waterways logistics company is among the roughly half-dozen companies that could resumed delayed IPO plans as federal and state governments ease restrictions and reopen sections of the economy in Brazil. 

Since last week, Brazilian homebuilder You Inc and fashion retailer Grupo Soma both set a target price for their IPOs, while pulp and paper producer Irani Papel e Embalagem said it would restart a so-called re-IPO and homebuilder Even announced plans to spin off one of its subsidiaries on the B3 stock exchange in São Paulo.

Meanwhile, high-end real estate developer Lavvi Empreendimentos Imobiliários and drugstore group d1000 filed for IPOs on the B3 as private education company Cogna Educação began the process to list its K-12 subsidiary, Vasta Educação, on the Nasdaq stock exchange in the United States.

Since late May, Grupo SBF, which owns sporting goods chain Centauro, raised BRL900 million from its IPO, drugstore chain Pague Menos and environmental services company Ambipar either filed or restarted IPOs, and Carpark operator Allpark Empreendimentos, which does business under the name Estapar, raised at least BRL300 million from its IPO and was the first issuer since February,

Besides Hidrovias, mid-sized lenders Banco Daycoval and Paraná Banco, insurer Caixa Seguridade and truck rental company Vamos also suspended their planned offerings due to the COVID-19 pandemic.