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Burger King operator BK Brasil files for IPO in wave of listings
October 20, 2017 / 1:54 PM / a month ago

Burger King operator BK Brasil files for IPO in wave of listings

BRASILIA/SAO PAULO (Reuters) - BK Brasil Operação e Assessoria a Restaurantes SA, operator of the Burger King fast-food chain in Brazil, will list an undisclosed amount of new shares on the country’s stock exchange, the latest in a year-long wave of initial public offerings.

Consumers line up at a Burger King restaurant in Sao Paulo, Brazil October 20, 2017. REUTERS/Paulo Whitaker

According to a regulatory filing, controlling shareholders Vinci Partners Investimentos Ltda and BRL Trust Investimentos may sell shares in the offering, as may minority shareholder Sommerville Investments BV.

The investment banking unit of Itaú Unibanco Holding SA (ITUB4.SA) will be the lead underwriter, the filing said.

BK Brasil also hired the investment banking units of Bank of America Corp (BAC.N), Banco BTG Pactual SA BBTG11.SA, Banco Bradesco SA (BBDC4.SA) and JPMorgan Chase & Co (JPM)N> to help underwrite the issue.

BK Brasil will use the proceeds from the sale of new shares to fund expansion of its chain of 492 restaurants in the country.

A Burger King restaurant is seen on a main street in Sao Paulo, Brazil October 20, 2017. REUTERS/Paulo Whitaker

The transaction underlines how a stock market rally has turned companies’ attention back to the equities market after a years-long drought of IPOs.

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Vinci Partners, which has controlled BK Brasil since 2013, is seeking to cash in on the outlook for accelerating economic growth after the nation’s harshest recession in a century.

Economists expect household spending to lead the recovery as low interest rates curb debt spending and slow inflation boosts purchasing power.

BK Brasil is controlled by a group of investors led by Vinci and U.S.-based fund Capital International Inc. Restaurant Brands International Inc (QSR.TO), which controls the Burger King chain in the United States, and Singapore’s sovereign wealth fund Temasek Holdings Ltd each hold a 15 percent stake.

Net revenue at BK Brasil, which is the master franchiser of Burger King in the country, rose 28 percent in the first nine months this year from the same period in 2016.

Editing by Chizu Nomiyama and Bernadette Baum

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