ANOTHER BRAZILIAN ETHANOL COMPANY CONTEMPLATES IPO

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By Monica Magalhaes, from Sao Paulo

The Board of Directors of Brazil’s Vale do Rosario company has approved studies to open up the company’s capital. With headquarters in Morro Agudo, Sao Paulo state, Vale do Rosario has 109 shareholders.

Vale do Rosario's decision to open its capital reflects the company’s intention of financing the purchase of the equity of smaller shareholders interested in abandoning their positions. It is also a move that will allow the company to expand its operations.

Vale do Rosario has commissioned other studies, to be delivered within the following weeks. Based on these studies, the company's management will hold a series of presentations and discuss priorities throughout the IPO process.

One of the most traditional refineries in Brazil, Vale do Rosario controls 50% of the MB plant, 53% of the Jardest plant, and 24.5% of Crystalsev, a trading company that negotiates sugar and ethanol production in nine plants in the interior of Sao Paulo state.

The company is investing R$ 150 million (~US$ 68.18 million) in the construction of a unit that will produce sugar and ethanol in the city of Frutal, in the west of Minas Gerais state. The company also has a project underway to co-build a plant with the Maeda group, through the MB plant.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.