Carrefour SA

PARIS — Carrefour SA is taking its Brazilian arm public.

The world’s second-largest retailer after Wal-Mart Stores Inc. said Atacadão SA, the parent company for all of its activities in the South American country, filed a preliminary prospectus on June 28 aimed at listing Grupo Carrefour Brasil shares on the Novo Mercado segment of the São Paulo stock exchange. Carrefour has been weighing the possibility of an IPO in Brazil for some time.

The IPO is expected to be priced on July 18 and shares to begin trading on July 20 under the ticker CRFB3, subject to market conditions.

The IPO will consist of a base offering including a primary offering of 205,882,353 shares to be issued as part of a share capital increase representing 10.4 percent of Carrefour Brasil’s share capital after completion, as well as a secondary offering of 91,261,489 shares to be sold by Carrefour and Peninsula, the investment vehicle of Brazilian billionaire Abílio Diniz’s family and Carrefour’s third largest shareholder, accounting for 1.7 percent and 2.9 percent of share capital, respectively, after the base offering.

The indicative price range of the IPO is between R$15 and R$19 per share, which values Carrefour Brasil at between R$29.7 billion and R$37.6 billion at the time of the IPO.

Following the completion of the base and secondary offerings, as well as a call option exercised by Peninsula to acquire 4 percent of existing share capital on June 5, Carrefour would hold no less than 71.3 percent of Grupo Carrefour Brasil. Peninsula would hold 8.5 percent and the company would have a free float of 20.3 percent.

Carrefour’s activities in Brazil include its namesake hypermarkets, supermarkets, convenience stores, financial solutions and complementary services as well as cash and carry and wholesale operations operating under the Atacadão banner.

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