Cosan (NYSE:CZZ) S.A. (B3: CSAN3; NYSE: CSAN), a major player in the retail-auto dealers and gasoline stations sector, announced today that its subsidiary Moove Lubricants Holdings has initiated an initial public offering (IPO) of 25 million common shares. The offering includes 6.25 million shares by Moove and 18.75 million by Cosan and Galt Lubes Investments Limited, collectively the Selling Shareholders.
The shares are being offered within an estimated price range of $14.50 to $17.50. Moove has also filed to list on the New York Stock Exchange under the ticker symbol "MOOV". The Selling Shareholders may grant underwriters an option to purchase up to an additional 3.75 million shares during a 30-day period at the IPO price, minus underwriting discounts and commissions.
The offering is led by a group of underwriters including J.P. Morgan, BofA Securities, Citigroup, Itau BBA, BTG Pactual, and Santander (BME:SAN) as global coordinators, and Goldman Sachs, Jefferies, and Morgan Stanley as joint bookrunners.
This announcement follows a previous material fact disclosed on July 10th, 2024, and marks a significant step for Moove in its capital market journey. Cosan's Chief Financial and Investor Relations Officer, Rodrigo Araujo Alves, has confirmed the details of this offering.
The information for this article is based on a press release statement.
In other recent news, Cosan Ltd. reported a robust second quarter in 2024, with a marked increase in EBITDA from BRL 6.2 billion to BRL 7.1 billion. The company emphasized its commitment to maintaining safety standards, ensuring dividend payments, and improving its debt service coverage ratio. A potential IPO of Moove, liability management, and debt reduction strategies were among the future plans discussed.
Furthermore, Cosan highlighted its adjusted stake in Vale and the dissolution of the collar financing structure. The company underscored the importance of a balanced capital structure and its commitment to deleveraging without compromising portfolio quality.
These recent developments indicate Cosan's focus on strategic growth and capital discipline. With solid operational results from business segments such as Rumo, Compass, Moove, Radar, and Raízen, Cosan continues to actively manage its portfolio and capital allocation to optimize and reduce CapEx. The company aims for a sustainable debt service coverage ratio of 1.5x for organic deleveraging.
InvestingPro Insights
As Cosan S.A. (NYSE: CSAN) moves forward with the IPO of its subsidiary Moove Lubricants Holdings, investors may find additional context from InvestingPro data and tips valuable.
According to InvestingPro, Cosan's market capitalization stands at $4.45 billion, with a price-to-earnings ratio of 9.68, suggesting a potentially attractive valuation. The company's revenue for the last twelve months as of Q2 2024 was $7.22 billion, with a solid gross profit margin of 30.09%.
InvestingPro Tips highlight that Cosan is expected to see net income growth this year, and analysts anticipate sales growth as well. These projections align with the company's strategic move to take Moove public, potentially unlocking additional value for shareholders.
Moreover, Cosan has maintained dividend payments for 15 consecutive years, with a current dividend yield of 3.29%. This consistent dividend history may appeal to income-focused investors considering the stock alongside the Moove IPO opportunity.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Cosan, providing a more comprehensive view of the company's financial health and market position.
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