Raizen IPO prices at low end of range due to risk profile of massive planned expansion

In Brazil, Bloomberg reports the Raizen IPO was likely priced at more than $1.1 billion on Tuesday with more than 810 million shares sold near the lower end of the expected valuation at just $1.42 per share. Concern about the company’s massive expansion plans following the acquisition of Biosev earlier this year and its hopes to significantly boost greenfield and brownfield investments may have weighed on investors’ confidence and therefore the lower opening share price and valuation.