July 3, 2007

 

Brazilian beef exporter Minerva SA to raise US$269 million in IPO

 

 

Brazil's fourth largest beef exporter Minerva S.A.  seeks to increase 372 million Brazilian reals (US$192 million) to BRL516 million (US$269.45 million) to its initial public offering on the Brazilian Stock Exchange, or Bovespa, the company said Monday (July 2) in a statement.

 

Minerva said it plans to sell 24 million common shares, with 20 million via a primary offer and 4 million through a secondary offering beginning July 20. The company expects a price range of BRL15.50 to BRL21.50 per share.

 

Credit Suisse Group (CS) is the lead coordinator of the operation.

 

The company said it intends to use the proceeds to expand its production capacity and also in possible acquisitions.

 

Investors can reserve shares July 10 through July 17. Minerva said it could offer an extra lot of shares if there is sufficient demand.

 

The shares will be sold in Brazil and to qualified foreign investors under 144A rules used by the US Securities and Exchange Commission.

 

Minerva said the shares will trade under the ticker symbol "BEEF3.BR" and will be listed under the Novo Mercado mechanism.

 

The Novo Mercado has the most rigorous listing rules on the Bovespa and for the company to qualify in the trading firm, it must sell a minimum stake of 25 percent, and 100 percent of the company's shares must be common rather than preferred.

 

With the IPO, Minerva is the third Brazilian beef processor to follow Friboi and Marfrig to list its shares on the local stock exchange.

 

Minerva's IPO comes amid an expansion of local beef processors.

 

Brazil is the world's leading beef exporter, accounting for roughly 30 percent of the international beef market.