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Banco BTG Pactual SA, the Brazilian bank led by billionaire Andre Esteves, has chosen Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM) to work on an initial public offering, according to a person familiar with the matter.
The bank plans to sell 10 percent of itself in the IPO through primary shares on the Sao Paulo exchange, said the person, who declined to be identified because the process is private. Representatives at BTG, JPMorgan and Goldman Sachs declined to comment. The filing may happen this week, the person said.
Brazilian companies are lining up to complete IPOs as foreigners resume buying stocks from Brazil after demand plunged last year, Eduardo Refinetti Guardia, BM&FBovespa SA’s chief financial officer, said this month. IPOs in 2012 will probably exceed last year’s 6.51 billion reais ($3.8 billion) as investors return after withdrawing funds in 2011 amid concern that global economic conditions would deteriorate, he said.
BTG postponed its IPO after selling about 18 percent of the company to a group of investors in December 2010. It sold a $1.8 billion stake to a group that includes the Rothschild family and Italy’s Agnelli family, which controls automaker Fiat SpA. Other investors include J.C. Flowers & Co., Government of Singapore Investment Corp., China Investment Corp. and the Abu Dhabi Investment Council.
The 2010 transaction valued BTG at about $10 billion. On Feb. 8 2012, BTG announced the buying of Chile’s brokerage firm Celfin Capital SA for $245 million in cash and 2.4 percent of BTG equity, for a total of $600 million, according to a person familiar with the matter. The equity portion means that BTG was worth about $15 billion in the deal.
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