By Carolina Mandl
SAOPAULO – Brazil’s Raizen, a joint venture between Royal Dutch Shell and Brazilian energy company Cosan SA, plans to raise roughly 6.9 billion reais ($1.34 billion) in an initial public offering, a securities filing showed on Wednesday.
Raizen said it set the price range at 7.40 to 9.60 reais per share, which will give the company a valuation between 73 billion reais ($14.13 billion) and 98 billion reais, according to the document, as Reuters reported earlier on Tuesday.
The final price will be set on Aug. 3.
Raizen will initially sell 810,811,000 shares in the offering, but it may increase it by 35% depending on demand.
The company said it plans to use the offering proceeds to build new plants to expand production, invest in storage infrastructure and boost productivity.
The IPO syndicate has 11 investment banks, including the units of Banco BTG Pactual SA, Citigroup, Bank of America, Credit Suisse Group AG, JPMorgan Chase & Co, Banco Bradesco SA, Banco Santander Brasil, XP Investimentos, HSBC, Safra and Scotiabank.
($1 = 5.1635 reais)