June 28, 2007

Brazilian beef exporter Marfrig raises US$454 million in IPO

Brazil's third largest beef exporter, Marfrig Frigorificos e Comercio de Alimentos S.A. has raised 887.4 million Brazilian reals (US$454 million) from its initial public offering on the Brazilian Stock Exchange, the company said Wednesday in a statement.

Marfrig sold 52.2 million common shares at BRL17.00 per share. The price came at the lower end with the company's initial estimate of between BRL17.00 and BRL22.00 per share.

The shares, which would begin trading June 28, were sold in Brazil and to qualified foreign investors. Merrill Lynch & Co. Inc. (MER) was the lead coordinator of the operation.

Marfrig is the second Brazilian beef processor to list its shares on the local stock exchange.

In March, Brazil's JBS SA, which controls leading beef exporter Friboi, raised BRL1.6 billion (US$823 million) from its IPO. With the money raised, JBS bought Swift Foods Co., the third-largest U.S. processor of beef and pork, making it the largest beef company in the world.

Other beef companies are expected to follow in the bid to seek a listing. In May, Minerva also started its IPO process and Bertin SA has already shown an interest in an IPO.

Brazil accounts for almost 30 percent of the international beef market.