Road shows for the planned IPO of Brazilian towerco T4U will reportedly start at the end of the month while pricing is expected on 16 October, despite concern over the outcome of next month’s president election in the country.
T4U, which is owned by…
Road shows for the planned IPO of Brazilian towerco T4U will reportedly start at the end of the month while pricing is expected on 16 October, despite concern over the outcome of next month’s president election in the country.
T4U, which is owned by Israeli holding company Fishman Group, and its shareholder D Dots Investments are looking to raise about R$500m (US$208.7m) from the public offering, according to a Reuters report citing sources with direct knowledge of the situation.
T4U, Fishman Group and D Dots Investments have not responded to a request for comment.
Last month, the Sao Paulo-based towerco filed a prospectus with Brazil’s securities regulator CVM saying it would conduct a primary and secondary public offering of shares. The prospectus did not mention the number and price of shares to be offered or the timeframe for the IPO.
Bank of America Merrill Lynch, Itau BBA, UBS and Citigroup are advising on the offering.
The first round of Brazil’s general elections will be held on 5 October. Outgoing president Dilma Rousseff, from the Workers Party, is currently neck and neck with Socialist Party’s Marina Silva, according to recent polls.
Investors are reported to be concerned about election-related risks, including reducing liquidity and an economic recession.
In recent months, rising demand for high-speed internet has fuelled growth in the Brazilian tower segment, prompting many mobile carriers to sell and lease back their towers in a bid to cut costs.
In June, American Tower acquired BR Towers, which operates more than 4,000 sites nationally, for R$2.18bn (US$978m) to expand its presence across the country.
Later in the month, the local subsidiary of SBA Communications bought 1,641 local towers from mobile operator Oi for R$1.17bn (US$530m).
