Moove launched its IPO on the New York Stock Exchange this morning, aiming to sell 25 million shares at a post-money valuation of around R$10 billion, in the middle of the indicative range.
The company, which manufactures and sells lubricants in several countries, plans to price the operation on the 9th, in what will be the first IPO of a Brazilian company since Nubank’s listing in December 2021.
Moove launched the operation with an indicative price range of $14.50 to $17.50 per share.
In the middle of the range ($16), the company would be valued at 8x its estimated 2025 EBITDA, reaching a valuation of R$10 billion.
At the top end, the multiple would be around 8.5x EBITDA, with a valuation of R$11 billion.
The official roadshow begins today, but during the pilot fishing, investors have shown interest in the transaction, according to a source involved in the operation. “There are many local investors looking, but the deal will be anchored mainly by foreigners,” said the source.
The operation will be primarily secondary. In the middle of the range, Moove would raise only $100 million in primary, which will be used in part to pay for the acquisition of DIPI Holdings.
Of the remaining $300 million, $100 million would be from sales by Cosan, owned by Rubens Ometto, which currently holds 70% of the company’s capital, and $200 million from sales by CVC Capital Partners, which holds the remaining 30%.
Depending on demand, the offer may have a greenshoe, which would increase the amount by 50%.
Moove is one of the largest manufacturers and distributors of lubricants in Latin America and has the exclusive rights to the Mobil brand in Brazil.
The company, which Cosan acquired along with Esso’s gas station network in 2008, sells products to various sectors, mainly automotive and industrial, and has operations in Latin America, the United States, and Europe. Today, almost half of its revenue is in strong currency.
Moove reported revenue of R$5.024 billion in the first six months of the year, a 1.6% decrease compared to the previous year. EBITDA was R$690.2 million, a 9% increase, and net profit was R$237.6 million, compared to a loss of R$58 million a year earlier.
In 2023, the company had revenue of R$10.07 billion, EBITDA of R$1.2 billion, and a profit of R$266 million.
The IPO allows Cosan to highlight the value built in Moove over the past few years.
With the IPO, Moove becomes the fourth listed company in the Cosan Group, alongside Rumo, Raízen, and Cosan itself. Compass, the group’s gas company, remains unlisted.
Global coordinators are JP Morgan, Bank of America, and Citi, followed by Itaú BBA, BTG Pactual, and Santander. Goldman Sachs, Jefferies, and Morgan Stanley are also part of the syndicate.
CORRECTION: An earlier version of this article contained the wrong valuation.
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Cosan kicks off Moove’s IPO; aims to price offering in October
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
