Brazil’s Cetip To Resume IPO Plans This Week

SAO PAULO (Reuters) – Cetip, Latin America’s largest clearing house, this week will resume its plans to put up for sale as much as 50 percent of its capital in an initial public offering, O Estado de S. Paulo reported on Monday, without saying how it obtained the information.

Cetip is the latest exchange company in emerging markets seeking to raise capital as appetite for risk grows and some economies, including Brazil, have proved surprisingly resilient in the face of global financial turmoil.

Cetip might seek to fetch up to 4 billion reais ($2.1 billion) in the transaction, Estado reported, adding that the company declined to comment.

The company, in which private equity fund Advent bought a 30 percent stake in May for about $180 million, will file a notice with regulatory authorities as early as Tuesday, Estado said. An IPO would help Advent cash in millions of reais following its investment in Cetip, Estado reported.

Cetip is a clearing house that oversees more than 2.5 trillion reais in as many as 50 different classes of assets, including derivatives contracts, local notes and exotic securities. It is also the largest clearing house for over-the-counter financial contracts.

Companies have raised more than 21 billion reais in Brazil from the sale of shares this year. (Reporting by Guillermo Parra-Bernal; Editing by Lisa Von Ahn)