On May 24th the Brazilian branch of the French retail chain announced the filing of a request protocol to conduct an IPO in Brazil. The documentation was forwarded to the Securities and Exchange Commission of Brazil. This is the first step to toward conducting an IPO, which the company expects to happen in July.
The operation will occur through the issuance of bonds of Atacadao, the company that manages Carrefour in Brazil. The bonds are expected to be listed at Novo Mercado, the highest segment of corporative governance of B3, the 5th largest stock exchange in the world.
Carrefour is yet to comment, but the company has been studying the issuance of bonds of its subsidiary in Brazil for over three years and conditions were becoming more favorable, as the CFO, Pierre-Jean Sivignon, noted on March 9th: “This operation will happen, if the conditions allow it to.”
The French company believes in the Brazilian economy
The news confirms the intention the French retailer to follow through on its announcement of September 4th 2016, regarding its desire to go public in the first semester of 2017. In that opportunity, the CEO of Carrefour in Brazil, Charles Desmartis, claimed that the value they aim for is within 3 to 4 billion Reais. The company is yet to confirm whether this prediction has proven to be accurate.
For more information on the strategy of Carrefour for Brazil, check: http://www.leadersleague.com/en/news/carrefour-to-keep-investing-in-brazil
With this announcement, the French company shows faith in the Brazilian economy, despite the political turmoil the country is currently undergoing. In the first quarter of 2017, Carrefour Brazil registered a profit of $199 million reais.