C&A starts in IPO process in Brazil

C&A, one of the largest fashion retailers in the country, has asked for an initial offer of shares (IPO), expanding the line of companies that are running to list in the local stock exchange in order to avoid competing in the pockets of investors with a series of privatizaçõ Planned for the coming months. According to the preliminary prospectus of the operation, the resources of the primary tranche – new stocks, whose resources of the sale go to the company's cash – will be used to pay intra-company loans and for organic expansion. In the document filed in the Securities and Exchange Commission (CVM), C&A details its expansion plan, which includes the detection of 159 possible locations for opening stores. C&A also intends to improve the ecommerce platform and financial product offerings, open up another distribution center to support this growth plan, and seek acquisitions. The family Brenninkmeijer, of the brothers Clemens and August whose initials gave rise to the mark in Dutch in 1861, will be a saleswoman shareholder in the secondary offer. The secondary lot will be done through Cofra Investments and Incas SA, both investment vehicles headquartered in Luxembourg and controlled by the founding family. C&A has been in Brazil since 1976, when it opened its first store in São Paulo's Ibirapuera shopping mall. Currently, the company has 282 physical units in the country and presents itself as the second largest in terms of net revenues among the fashion retailers in the country listed in B3. The company says in the prospectus that had net revenues of 5.17 billion reais last year, an increase of 2.6% compared to the previous year. Last year's net income totaled 173.6 million reais, a 79.2% jump over 2017. The offer will be coordinated by Morgan Stanley, Bradesco, BBI, BTG Pactual, Citi, Santander and XP Investmentos, according to the document filed in the Securities and Exchange Commission (CVM). The C&A registration application extends the line of companies from various sectors that are running to list their shares in the São Paulo Stock Exchange in the coming months, while the federal government prepares to bring to the market various state actions, including arms of Caixa Federal economic, besides a slice in Eletrobras. The list of initial offers of shares under analysis in the CVM includes the Vivara jewelry network, Banco BMG and Iguá Saneamento. Cyrela Commercial Properties, the commercial real estate arm of the Cyrela construction company, also requested a registration for a subsequent primary offer. This year, they have opened the capital at B3 to SBF, owner of the Centauro Sporting goods stores network, and the electric Neoenergia. There were also subsequent offers of Petrobras ' shares, the BR Distribuidora and Linx fuel station network.