Brazilian private education provider Cruzeiro do Sul Educacional has hired US firm Milbank and Lefosse Advogados in São Paulo to launch an IPO on the B3 stock exchange for 1.2 billion reais (US$228 million).

The company's controlling shareholder, Archy, a vehicle of Singaporean investment fund GIC, enlisted Brazil's Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados.

The underwriters turned to White & Case LLP n São Paulo and Miami and Brazilian firm Machado Meyer Advogados. The deal closed on 12 February.

Cruzeiro do Sul Educacional raised nearly 1.1 billion reais (US$204 million) in the primary offering, while selling shareholders obtained the remining 161 million reais (US$30 million) from a secondary offering.

The shares priced at 14 reais (US$2.6) each, which was below the lower limit of 16.5 reais (US$3.6).

Stabilisation agent Bank of America Merrill Lynch Banco Múltiplo has the option to underwrite further shares before 9 March.

Cruzeiro do Sul Educacional intends to use most of the proceeds to expand the business through acquisitions. It will also allocate a portion to greenfield investments, which is when a company sets up new operations in another country.

Founded in São Paulo in 1965, Cruzeiro do Sul Educacional is Brazil's fourth largest education group by number of students. It has an average of 330,000 students registered across 25 campuses in Brazil. Besides its own brand, it also owns several other learning institutions, such as the City University of São Paulo (UNICID), the University Centre of the Federal District (UDF) in Brasília and Positivo University in Curitiba.

Multiple Brazilian IPOs have taken place since the start of the year. The largest so far was that of the mining division of local steelmaker CSN, which raised US$968 million this month. Other recent offerings include those of interior design company Westwing and mobile technology company Bemobi.

Counsel to Cruzeiro do Sul Educacional

  • Milbank
  • Lefosse Advogados: Partners Luiz Octavio Lopes, Ricardo Prado and Mirella Abe, counsel Luciana Moutinho, and associates Ligia Padovani, Leonardo Gaspar and Lara Maroni in São Paulo

Counsel to Archy

  • Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados: Partner Vanessa Fiusa and associates Beatriz Martins Camões, Carolina Laboissiere Muzzi and Amanda Negrão de Araújo in São Paulo

Counsel to Banco BTG Pactual, Banco Bradesco BBI, Bank of America Merrill Lynch Banco Múltiplo, Banco Morgan Stanley and Banco Santander
White & Case LLP

  • Partners Donald Baker and John Guzman in São Paulo, and counsel Karen Katri in Miami

(Latin Lawyer - 26.02.2021)