Leading Brazilian energy company Raízen is preparing an initial public offering (IPO), Reuters reported sources as saying on 29 March.
Raízen is a joint venture formed in 2020 between Cosan and Royal Dutch Shell.
The IPO is expected to be one of the largest this year, raising up to US$2.25bn, according to sources quoted by Reuters.
Raízen had declined to comment on the subject, Reuters said.
The company is expected to be listed on Brazil’s stock exchange B3, according to one of the sources, and is aiming to conclude the transaction by June or July.
Energy company Cosan had disclosed earlier this month that its joint venture with Shell was being prepared for a listing ahead of a planned flotation of two other companies it controlled as it sought to raise capital and finance growth, Reuters reported.
Raízen is involved in the production of biofuels and bioelectricity from sugarcane and is actively expanding its portfolio in renewable sources, such as second generation ethanol (E2G), biogas, biomass and solar energy. It also controls a large fuel distribution network.
In February, Raízen acquired Biosev, a sugar and ethanol company from Louis Dreyfus Holding.
The agreement included nine production units – six in six in São Paulo, three in Mato Grosso do Sul and one in Minas Gerais – with a crushing capacity of 32M tonnes of sugarcane.
According to its website, Raízen operates 26 sugar, ethanol and bioenergy production units – and a 2G ethanol plant – with an installed capacity for processing 73M tonnes of sugarcane, which in the 2019-2020 crop year produced approximately 2.5bn litres of ethanol and 3.8M tonnes of sugar.