Cosan, owner of the lubricant company, explained that purchases from foreign investors were made at prices below the proposed range; It would be the first initial public offering of shares by a Brazilian company on Wall Street in nearly three years
THE Movemanufacturer of lubricants in Cosanhas decided to postpone the initial public offering (IPO) which would have ended on Wednesday evening, the 9th, in New York. The reason is that buy orders from foreign investors were placed at prices below the proposed range, which ranged from $14.50 to $17.50. Cosan attributed the withdrawal to “adverse market conditions”.
The deal was expected to break a three-year fast for Brazilian companies to go public on Wall Street. The most recent IPO was Nubank in December 2021.
In meetings with investors in the United States, according to the participants in the negotiations, there was a lot of talk about the Brazil risk. Many long-term investment funds that hold paper, the so-called “long only”, have decided not to continue offering.
According to the interlocutors, the order book contained a portion of orders between 12.50 and 13 dollars per share. At this level the company preferred to wait for a better time to present the offer. Thus continues the almost three-year fast without listing Brazilian companies in New York. In the domestic market, the fast has already reached its fourth year.
In the New York offering, the company intended to sell 25 million shares, in a deal that could raise $400 million. The company is expected to be valued in New York at $1.8 billion. There would still be the possibility of an extra batch. The sellers were Cosan and the CVC fund, as well as a share issue by the company, in a smaller tranche.
The primary financing, the resources of which would go to Moove itself, would amount to $100 million, resources that would be used to pay for part of the acquisition of DIPI Holdings, a Brazilian lubricant maker.
Moove has filed for a U.S. stock exchange listing because more than half of its revenue comes from overseas. The goal is to raise funds for acquisitions in North America, where it already has a network of 48 distribution centers, and in Europe.
The coordinators of the offer are the banks JP Morgan, Bank of America, Citigroup, Itaú BBA, BTG Pactual and Santander.
Source: Terra
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