By Tatiana Bautzer and Paula Laier
SAO PAULO (Reuters) – Raízen, a joint venture between Royal Dutch Shell and Cosan, is seeking a valuation of 70 billion reais in its initial public offering (IPO), said four knowledgeable sources .
The valuation can range from R$60 billion to R$80 billion depending on demand, they added. The company, which operates in the area of fuel distribution and sugar and ethanol production, decided to reduce the supply initially estimated at around 12 billion reais, said two of the sources. The company now wants something around 6 billion, people said on condition of anonymity.
Raízen did not immediately respond to a request for comment. The company plans to present a new prospectus to the Brazilian Securities Commission (CVM) later this week. In preliminary meetings with investors, a process known as ‘pilot fishing’, the book was almost completely covered, according to the sources. The coordinators of the IPO are BTG Pactual, Citi, Bank of America, Credit Suisse, JPMorgan, Morgan Stanley, Bradesco BBI, Santander Brasil, XP Investimentos, HSBC, Safra and Scotiabank.
+ Learn about the effectiveness of each vaccine against Covid-19