Warburg Pincus-backed Sequoia raises $179 mln in Brazil IPO – sources


Adds details, background

SAO PAULO, Oct 5 (Reuters)Brazilian logistics company Sequoia Solucoes Logisticas SEQL3.SA raised 1 billion reais ($179.39 million) in an initial public offering priced on Monday, according to two people familiar with the matter.

The company, which has U.S. private equity firm Warburg Pincus as controlling shareholder, priced its shares at 12.40 reais each, bellow the bottom of its price range, which was set at between 14.25 reais and 17.75 reais.

Both the company and its shareholders sold shares in the offering, which was managed by investment banks Banco BTG Pactual SA, Santander, Morgan Stanley and ABC Brasil.

IPOs by Brazilian companies have faced lower-than-expected demand amid concerns about Brazil’s fiscal discipline and a huge pipeline of deals.

Still, a source said that 56% of the shares sold in the offering have been acquired by foreign investors, above the 40% average seen this year.

($1 = 5.5745 reais)

(Reporting by Carolina Mandl; editing by Grant McCool)

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