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Analyst Insights Analyst Insights Market Talk: Raízen IPO

June 17, 2021

1 min read

Market Talk: Raízen IPO

  • Raizen IPO could become the largest of the Sao Paulo exchange.
  • The offer is expected to attract investors looking for sustainability.
  • One of the destinations of the capital raised should be towards 2G ethanol and biomass pellets.

 Second big move from Raizen this year 

  • After buying Biosev earlier this year, Raizen now pushes to raise capital via an IPO for expansion.
  • Roughly 17% of the cane crushed in CS Brazil each year could be processed by Raizen and soon could be even more.
  • According to the preliminary prospect submitted, the capital raised will be used for new mills, expanding biofuel production capacity, 2G ethanol, biomass pellets production, and expansion of current units.
  • The IPO is expected to raise between BRL10-13bi, if on the north side of the estimate it could be the largest IPO of the Brazilian stock exchange.

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  • Although no figures were disclosed as to multiples for the operation, we believe values should be close of the one from Jalles Machado earlier this year.
  • This goes to show that there are groups looking to expand, it just is not the reality for most of the CS.  

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Ana Zancaner

Ana graduated from Insper University Sao Paulo in 2013, with a bachelor’s degree in business administration. She joined Czarnikow as an intern in 2013 and is now our senior analyst in our Sao Paulo office. At Czarnikow she is responsible mainly for analysis of the Brazilian sugar and ethanol sector but supporting other consulting requests as well.

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