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Saturday, July 21, 2018

Petrobras Seeks USD 6.8bln Valuation for New IPO

Maritime Activity Reports, Inc.

November 26, 2017

Photo: Petroleo Brasileiro SA

Photo: Petroleo Brasileiro SA

 Brazilian state-run oil company Petroleo Brasileiro SA (Petrobras)will seek a valuation of up to 22 billion reais ($6.8 billion) for its fuel distribution unit in what is expected to be Brazil’s biggest IPO of the year, reported Reuters.

 
The Brazilian energy giant intends to raise around $2.3 billion or $7.5 billion reais at the high end of the price range of 15 reais-19 reais per share. Petrobras is expected to offer between 25% and 40% of its stake in BR Distribuidora. 
 
The offering could grow to a 33.75 percent stake in the distribution unit if the company sells all additional and supplementary allotments, according to a new regulatory filing.
 
At the high end of a suggested price range of 15-19 reais/share, the company would fetch as much as 7.5 billion reais with the offering, a key part of its plan to sell assets and reduce its enormous debt load.
 
Major financial service provider Citigroup Inc. is likely to be the lead underwriter of the offering along with seven other banks.
 
BR Distribuidora operates over 8,000 gas stations, 91 fuel storage bases, 15 lubricant deposits and 109 fuel stations in airports.
 
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