Retailer Cencosud Brasil, owner of Prezunic, registers IPO request with CVM

The retail chain Cencosud Brasil registered on Wednesday (1) a request for an initial public offering (IPO) with the Brazilian Securities Commission (CVM), with a primary distribution of shares. The company focuses on operations such as the sale of consumer goods and essential items, both for end consumers and for resale.

The store chains operate in the food and non-food trade, present in 8 Brazilian states, with 339 stores at the end of the second half of the year.

The company claims to be the fourth largest food retail group in Brazil in terms of sales, with a leading position in states in the Northeast, Southeast and Midwest regions, in terms of sales revenue. The network consolidates the operations in the country of the Chilean group controlled by Cencosud. In 2012, the company acquired the Prezunic banner, with 31 stores.

According to the preliminary prospectus sent to CVM, the Cencosud Group is one of the largest retail chains in Latin America with nearly 60 years of history and presence in five countries on the continent: namely Chile, Argentina, Brazil, Colombia and Peru, and which counted on $14 billion in sales in 2020.

According to the document, the company recorded net income (controller) of R$ 39 million in the second quarter of this year, reversing the loss of R$ 30 million registered in the same period last year. The company added an Ebitda of R$136 million, down 18.9% in the annual comparison.

Cencosud Brasil intends to use the funds raised in the offer for potential mergers and acquisitions (50%), opening of new stores and renovation of existing establishments (35%) and investments to leverage e-commerce and the CRM platform ( customer information management) and logistics (15%).

The operation will be coordinated by Itaú BBA, Bank of America (BofA), JP Morgan, Bradesco BBI and Santander.