Brazil's QGEP Plans IPO On The BMFBovespa
SAO PAULO -(Dow Jones)- Brazilian oil and gas company, QGEP Participacoes SA said Thursday that it will hold an initial public offering on the Brazilian Stock Exchange, the BMFBovespa, to finance its expansion plans.
QGEP, which is an arm of local engineering and construction firm Queiroz Galvao, didn't set a date for the offer nor announce the volume of shares to be sold. The offer is subject to approval by the Brazilian Securities and Exchange Commission, or CVM.
Bank of America Merrill Lynch, BTG Pactual and Itau BBA have been hired to coordinate the operation.
The company said in its preliminary prospectus will use the IPO proceeds to finance its expansion plans via acquisitions of new oil blocks and others assets.
The shares will be listed under the Novo Mercado mechanism, which has the most-rigorous listing rules on the exchange. To qualify, a company must float a minimum stake of 25%, and 100% of the company's shares must be common rather than preferred stock.
The IPO plan was announced in a period of intense activity in the local capital markets by energy companies.
Last month, local oil startup HRT Participacoes em Petroleo SA (HRTP3.BR) raised more than $1.5 billion in its IPO, while the Brazilian unit of Australia's Karoon Gas Australia Ltd. unveiled a plan to raise around $773 million from its IPO.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-3544-7071; rogerio.jelmayer@ dowjones.com
(END) Dow Jones Newswires
11-04-100621ET
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