Brazil’s Cetip May Sell 1.15 Billion Reais of Shares

Cetip SA – Balcao Organizado de Ativos & Derivativos, Brazil’s biggest clearing house, and its shareholders may sell as much as 1.15 billion reais ($661 million) of shares in a secondary offering.

Cetip initially plans to sell 59 million shares and may add a supplementary offering, or “over-allotment,” of 8.84 million shares, the company said in a prospectus posted in Brazil’s Valor Economico newspaper today. The share price is estimated at about 13 reais to 17 reais, Cetip said.

Cetip last month was the 10th company since July 31 to announce a stock sale in Brazil, taking advantage of a rally in the Bovespa index, which has jumped 71 percent so far this year. Banco Santander SA’s Brazilian unit this month set a record for initial public offerings in the South American country with its 14.1 billion-real share sale.

Banco Itau BBA is managing the sale, together with Banco BTG Pactual SA, Banco Bradesco BBI SA, Banco Santander (Brasil) SA and Banco de Investimentos Credit Suisse (Brasil) SA, Cetip said in the prospectus.

Advent Securities owns 32 percent of Cetip, while Itau Unibanco Holding SA holds 9.8 percent and Banco Bradesco SA has 6.7 percent, the clearing house said in a separate statement last month.