2 Minute Read by A bus passes a Shell gas station in Buenos Aires, Argentina, on March 12, 2018. FILE PHOTO: People walk as a bus passes a Shell gas station in Buenos Aires, Argentina, on March 12, 2018. REUTERS/File Photo/Marcos Brindicci SAO PAULO, Brazil (Reuters) – Three people familiar with the subject said on Tuesday that Raizen, a joint venture between Royal Dutch Shell PLC and Brazilian energy giant Cosan SA, is aiming for a valuation of roughly 70 billion reais ($13.5 billion) in its initial public offering. According to them, the valuation might range from 60 billion to 80 billion reais, depending on demand. According to the sources, the company, which owns petrol stations and generates ethanol, has chosen to lower the offering from more than $2 billion to roughly $1 billion, or little more than 5 billion reais. Raizen did not respond to a request for comment right away. Raizen had hoped to raise 12 billion reais in the IPO, which will be limited to primary investors. The offering size and price range could be revealed in a new prospectus filed with the Brazilian securities industry watchdog CVM as early as this week, according to the people, who requested anonymity to discuss private negotiations. Orders approached close to the full book of the offering during preliminary discussions with investors, a practice known as pilot fishing. Banco BTG Pactual SA, Citigroup, Bank of America, Credit Suisse Group AG, JPMorgan Chase & Co, Morgan Stanley, Banco Bradesco SA, Banco Santander Brasil, XP Investimentos, HSBC, Safra, and Scotiabank are among the 12 investment banks in the IPO syndicate. (1 reais = 5.1634 dollars) Tatiana Bautzer contributed reporting, and Richard Chang edited the piece./n
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