Boston, MA 09/23/2014 (wallstreetpr) – Brazil Mobile phone tower operator T4U is set to carry out an IPO even as uncertainty over the impact of the upcoming elections continue to loom. The IPO is gaining momentum and T4U has appointed Bank of America Corp (NYSE:BAC), UBS AG as well as Citigroup to foresee the events of the IPO.
$209 Million to be raised
Sao Paulo-based T4U and partner D Dots Investments BV expect to raise a total of $209 million from the IPO, according to people with inside information. Finer details of the IPO have not yet been communicated as the transaction is still in the works. Controlled by Israel’s Fishman Group, T4U plans to begin roadshows for the IPO on the 29th of this month having already held meetings with investors on Monday. Veterinary products maker Ouro Fino Saude Animal Participacoes is also reportedly planning to carry out it’s IPO heading into the close of the year.
Concerns over Brazil Economy
The timing of the T4U’s IPO comes at a time when American Tower Corp has announced expansion plans in Brazil as it seeks to meet the increasing demand for high-speed internet services as well as the constructions of towers. The flagging economy in Brazil has already forced telecommunications giants to dispose of their towers opting for leasing agreements as one of the ways of preserving cash to improve on profit margins.
T4U IPO comes on the heels of the largest meat packer in the world, JBS SA, carrying out its IPO just a few weeks back. The biggest worry at the moment for banks like Bank of America Corp (NYSE:BAC) is that volatility might steam up from what is thought to be the most competitive election in nearly 12 years resulting in pricing discounts. Election related risks heading into the IPO continue to be closely watched as well as the ongoing decline in global liquidity levels.
