July 24, 2020 / 11:56 AM / 11 days ago

Brazil's Farmacias Nissei hires banks to raise $192 million in IPO: blog

SAO PAULO (Reuters) - Brazilian drugstore chain Farmacias Nissei has hired four banks to manage an initial public offering (IPO) aimed at raising 1 billion reais ($192 million), the Brazil Journal financial blog reported on Friday, citing unnamed sources.

The company, which is said to be a leading drugstore chain in the southern state of Parana, plans to use proceeds to fund organic growth and pay off a debt with U.S. investment firm Farallon Capital Management L.L.C, the publication said.

Farmacias Nissei is expected to file its IPO request at securities regulator CVM in mid-September and pricing is likely to occur by year-end, Brazil Journal said.

Banco Safra, Merrill Lynch and the investment banking units of Itau Unibanco SA (ITUB4.SA) and BTG Pactual (BPAC3.SA) are managing the share offer, which is likely to be mostly primary, the blog said.

Nissei was not immediately available for comment on the blog report.

The company ended 2019 with 305 drugstores, according to Brazil Journal, and net revenue of 1.5 billion reais.

Reporting by Gabriela Mello; editing by Jason Neely

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