Banco do Brasil sets insurance unit IPO, could raise $6 billion

Wed Apr 3, 2013 6:59am EDT

* Deal might be Brazil's largest IPO since 2009

* Pricing to take place on April 23

* Bank to sell at least 500 million common shares

SAO PAULO, April 3 (Reuters) - Banco do Brasil SA plans to raise up to 12.15 billion reais ($6 billion) in the initial public offering of its BB Seguridade insurance and pension unit, the bank said on Wednesday in a regulatory announcement.

That might be the largest IPO in Brazil since 2009, when Banco Santander Brasil raised 14 billion reais.

The pricing is scheduled to take place on April 23, Banco do Brasil said. The bank plans to sell at least 500 million common shares at between 15 reais and 18 reais each, the announcement said. An additional 175 million shares could be offered as part of the transaction, the bank added.

Earlier this year, bankers had told Reuters the transaction could fetch at least 5 billion reais.

Banco do Brasil's investment-banking unit is handling the transaction, with co-managers including Banco Bradesco SA , Itaú Unibanco Holding SA, JPMorgan Chase & Co. Other investment banks hired to help handle the deal include BTG Pactual Group, Banco Votorantim SA , Citigroup Inc and São Paulo-based Brasil Plural Banco Multiplo.