Biosev SA, the Brazilian sugar and ethanol company, announced Monday that it has raised 814.4 million reais or US$407 million in a unique initial public offering. The IPO has a money-back guarantee designed to ease investor concerns about Brazil's equity markets.
Biosev is a subsidiary of Louis Dreyfus Corp, the French commodities giant and the firm was able to sell off 46,67 million common shares at 15 reais per share. This was confirmed by securities regulator CVM on its website together with an additional 7 million shares sold.
This is the second time that Biosev and Louis Dreyfus undertook an IPO. Biosev, based out of Sao Paulo, announced a share offering last June but suspended the same in August because of lack of interest from investors.
The money back return allows the investor to return the shares by July 2014 at the price of 15 reais plus interest. The pricing of the options will be announced at the pricing of the IPO. These are called warrants in Brazil.
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