Royal Dutch Shell PLC’s (LON:RDSB) Brazilian joint venture Raizen is reportedly preparing a spin-out and IPO with a US$13.5bn (70bn Reais) valuation.
The precise size and pricing of the IPO could be set in a prospectus filed with the Brazilian authorities as soon as this week, according to a report by Reuters.
Raizen, which operates fuelling stations, could be valued between 60 to 80 billion Reais as it seeks to raise 6 billion Reais (US$1.2bn) of funding, down from prior estimates which pitched the IPO to raise 12 billion Reais (US$2.3bn).
It was reported that the IPO syndicate includes twelve investment banks including Citigroup, Bank of America, Credit Suisse Group AG, JPMorgan Chase & Co, Morgan Stanley, HSBC and Scotiabank.