SAO PAULO (Reuters) – Brazilian energy company Raizen, a joint venture between Cosan SA and Royal Dutch Shell PLC, has selected four investment banks to manage its initial public offering, expected to be one of the largest this year, raising up to 13 billion. reais ($ 2.25 billion), four people with knowledge of the matter said Monday.
Raizen has selected Banco BTG Pactual SA, Bank of America, Citi and Credit Suisse AG to be the lead banks in the transaction, and is expected to add more syndicates this week, sources added, requesting anonymity to reveal private talks.
Raizen, Citi and Credit Suisse declined to comment on the matter. BTG and BofA did not immediately respond to requests for comment from Reuters.
Raizen, the world’s largest sugar maker, also controls a large fuel distribution network and is Brazil’s fourth largest company by revenue, behind state-controlled oil producer Petroleo Brasileiro SA, known as Petrobras, iron ore miner Vale SA, and packer. JBS SA meat.
Raizen is expected to be listed on Brazil’s B3 stock exchange, said one of the sources, and aims to complete the transaction in June or July.
Cosan, an energy group, disclosed earlier this month that its joint venture with Shell was being put up for listing before the flotation plans of two other companies it controls to raise capital and financial growth.
The joint venture recently acquired Biosev SA, another sugar and ethanol company, from Louis Dreyfus in a cash and stock deal.
As part of the deal, Biosev shareholders will receive 3.5% of Raizen preferred stock, plus 1.49% redeemable share.
One source said Raizen may be worth up to 100 billion reais ($ 17.3 billion).
Raizen is one of the competitors of the Petrobras refinery for sale. They made a bid for the REPAR refinery, in the southern state of Parana, but the process was canceled and Petrobras was expected to relaunch it.
Reporting by Tatiana Bautzer and Carolina Mandl, in Sao Paulo; Edited by Marguerita Choy