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LCD-Sev Bioenergia, the Brazilian sugar, ethanol and bioenergy unit of Louis Dreyfus Commodities, confirmed Friday that it has officially filed for an IPO on the Sao Paulo stock exchange.
Under the filing sent by the subsidiary of the French agribusiness giant to CVM, the securities commission regulating the Sao Paulo stock exchange, Bradesco BBi bank will be the lead coordinator for the IPO in which JPMorgan, BB Investimento, Itau BBA, Santander and Votorantim banks will also take part.
LCD-Sev Bioenergia would not say what percentage of its capital will be sold, the amount it hopes to raise nor give details of the schedule for the sale.
It said primary and secondary shares would be sold in Brazil, with plans for sales overseas as well.
According to Agencia Estado, a leading financial news portal, LDC-Sev Bionergia is saddled with liquidity problems, a debt of nearly $1.5 billion and problems with its minority shareholders (who hold 35% of the company capital). It has also been reeling from the poor 2011-2012 sugar cane harvest.
The Dreyfus unit manages 330,000 hectares (815,447 acres) of land and employs more than 20,000 people in this country.
With 13 plants on Brazilian soil, LDC Bioenergia is the world’s second sugar, ethanol and bioenergy company in the world.
Brazil is the world’s first sugar producer and exporter and the second ethanol producer behind the United States.