Brazil Cosan IPO raises $1 bln, less than planned

SAO PAULO/NEW YORK, Aug 16 (Reuters) - Cosan Ltd.'s (CZLT11.SA: Quote, Profile, Research, Stock Buzz)(CZZ.N: Quote, Profile, Research, Stock Buzz) initial public offering in New York and Sao Paulo raised about $1 billion on Tuesday, about half what the Brazilian sugar and ethanol company had originally planned.

The stock priced at $10.50 per share in the United States and 21.05 reais in Brazil, the company said in a statement to the Sao Paulo Stock Exchange.

Cosan's shares fell as much as 1.4 percent on Wall Street after they began trading, but later regained footing to seesaw between negative and positive territories. In Sao Paulo, the stock will trade as Brazilian Depositary Receipts, or BDRs, as of Friday.

The deal was scheduled to price late on Wednesday, but was delayed to Thursday morning amid a global sell-off stemming from U.S. subprime mortgage jitters. The company said the delay resulted from registration issues with the U.S. Securities and Exchange Commission.

Cosan Chief Executive Ruben Ometto Silveira Mello did not ring the opening bell at the New York Stock Exchange as planned, and the company canceled all scheduled media interviews.

The offering is part of a broader overhaul of Cosan's shareholding structure that raised some eyebrows among Brazilian investors. Under the change, Mello will shift his controlling stake in Cosan SA (CSAN3.SA: Quote, Profile, Research, Stock Buzz) to Cosan Ltd., a new company based in Bermuda.

Cosan had previously planned to raise up to $2 billion with the offering to fund acquisitions and the construction of new mills and to keep up with soaring demand for biofuels like ethanol made from sugar cane.

The company later lowered its expectations as the price of Cosan SA shares fell, saying this week it could raise about $1.14 billion with the sale.

Shares of Cosan SA were down more than 4 percent in Sao Paulo. ($1=2.095 reais) (Reporting by Walter Brandimarte in New York; Juliana Siqueira and Todd Benson in Sao Paulo)