Brazil's Direcional seeks to raise $130 mln in IPO

SAO PAULO, Brazil, Nov 4 (Reuters) - Direcional Engenharia (DIRR3.SA), a Brazilian building company, said on Wednesday that it was seeking to raise up to 228 million reais ($130 million) through the sale of common stock in an initial public offering.

The Belo Horizonte, Brazil-based company will offer 20.7 million voting shares at a price range of 10 reais to 11 reais each, Direcional said in a newspaper announcement.

The company hired Itau Unibanco (ITUB4.SA) and the local investment-banking units of Banco Santander (SAN.MC) and Morgan Stanley (MS.N) to manage the transaction. The offering could be increased by 15 percent, Direcional said.

The company is expected to trade under the ticker DIRR3 from Nov. 19, one day after the conclusion of the offering, the announcement said.

($1=1.746 reais) (Reporting by Guillermo Parra-Bernal and Alberto Alerigi Jr.; Editing by Lisa Von Ahn)