Brasil Travel To Price IPO On Thursday

February 9, 2012

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Tourism company Brasil Travel and its shareholders are expected to price the company's initial public offering on Thursday, according to a statement released by the company.

The pricing for Brazil's first IPO of the year, originally scheduled for Wednesday, had been delayed due to a change in the number of shares existing shareholders and those involved in the IPO are allowed to acquire in a secondary offering.

The limit went from 15 to 50 percent of the stock, not including the supplementary lot and additional shares, in case no additional demand is seen over one third of the shares originally offered.

The company plans to cut the suggested price per share to BRR1,000 reais (USD$578) from a prior range of BRR1,250 reais to 1,650 reais, sources said on Wednesday.

Brasil Travel and shareholders said in a securities filing last month that they planned to offer 878,255 common shares. At the new price tag, the offering could raise up to BRR878.3 million reais (USD$508 million).