Ecorodovias to raise over $1bn in IPO

Italy's Impreglio and Brazil’s CR Almeida Group, the controlling shareholders of Ecorodovias, will sell their stakes in the company via the IPO. Neither the timeline nor the number of shares to be sold are yet known. Ecorodovias is one of Brazil’s largest toll road operators, managing over 1,450 kilometres of roads.

Brazilian toll road operator Ecorodovias has informed the Brazilian stock exchange that it plans to raise about $1.1 billion via an initial public offer (IPO).

Ecorodovias: seeking
$1.1bn through IPO

Ecorodovias is one of Brazil’s largest toll road operators, managing over 1,450 kilometres of roads across the country through five concessions. It also owns and operates two logistics platforms, a business it plans to expand via the construction of new port terminals and logistics platforms, Ecorodovias says in its prospectus.

The company will sell new and existing shares through the IPO, with the controlling shareholders planning to sell their stakes in the firm. Its objective is to raise capital to finance existing projects and acquire new companies active in its business areas.

Ecorodovias is jointly owned by CR Almeida Group (65 percent), a Brazilian construction and industrial firm, and Italian construction company Impreglio (35 percent). However, Ecorodovias did not specify a timeline for the IPO or the number of shares it plans to sell in its recent announcement.

The company has been growing over the last three years with revenues increasing to $536 million in 2009 compared with $445 million in 2008 and $344 million in 2007. Earnings before interest, tax, depreciation and amortization climbed to $370 million last year, a 23 percent increase in relation to 2008 and a 57 percent hike compared with 2007. Net profit in 2009 amounted to $103 million versus 2008’s $69 million. 2008 saw a momentary drop in revenues compared to 2007’s $86 million.

Banco Itau BBA, BTG Pactual and Credit Suisse are coordinating the IPO.