SAO PAULO (Reuters) - Brazilian pet store chain Petz PETZ3.SA, controlled by U.S. private equity firm Warburg Pincus, raised on Wednesday 3.03 billion reais ($570.71 million) in an initial public offering, according to a securities filing.
The company, controlled by U.S. private equity firm Warburg Pincus, priced its shares at 13.75 reais in the offering. The price range for the IPO was between 12.25 reais and 15.25 reais.
Petz plans to use the proceeds to open new stores and veterinary hospitals. Currently it has 110 stores.
Investment banking units of Itau Unibanco Holding SA, Banco Santander Brasil SA, Bank of America, JPMorgan Chase & Co and Banco BTG Pactual SA managed the offering.
A raft of Brazilian retailers have launched share offerings despite the economic crisis stemming from the coronavirus pandemic.
While companies such as Via Varejo SA VVAR3.SA raised funds in share offerings mainly to capitalize their businesses and weather the crisis, other retailers are seeing an opportunity to expand by acquiring or opening new stores and improving digital sales.
Despite the coronavirus crisis, sales at Petz rose by 36.6% in the first half from a year earlier, to 731.6 billion reais, as it opened new stores and boosted on-line sales.
Brazil is the world’s No. 3t pet market, according to Euromonitor, expected to amount $6.7 billion, behind the U.S. and China.
Reporting by Carolina Mandl; Editing by Chris Reese and David Gregorio
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