In the latest sign Brazil's long-dormant equity market is reviving, Grendene SA will hold an initial public offering on the country's New Market on Nov. 29, the shoemaker said in a statement on Thursday.

The company will sell about 17.3 percent of its voting shares, and possibly an additional 2.6 percent, on the New Market, a part of the Sao Paulo Stock Exchange with demanding rules for disclosure, accounting and minority shareholder rights.

Grendene did not provide price talk, but investors say the company is likely to raise around $200 million from the initial public offering.

Brazil's Banco Pactual is the lead underwriter, while Banco do Brasil , Banco Bradesco , Credit Suisse First Boston and Banco Santander are in the management group. They will offer some of the shares to investors in New York.

Grendene, localized in the dusty northeastern state of Ceara, employs 21,500 workers who manufacture plastic children's shoes, some of which are endorsed by local personalities. It had net revenue of 466 million reais ($164 million) and net profit of 28 million reais in the first half of 2004.

It is one among a growing number of Brazilian companies that have floated shares or are planning IPOs as greater economic stability increases demand for equities.

Insurance company Porto Seguro SA and medical laboratories firm Diagnosticos da America also plan to sell shares in the near-term. State-run energy company Celg is planning an IPO, and power company CPFL Energia debuted several weeks ago.

Companies on the New Market include cosmetics firm Natura Cosmeticos, waterworks Companhia de Saneamento Basico do Estado do Sao Paulo (Sabesp) and toll road operator Companhia de Concessoes Rodoviarias.Other companies to have launched IPOs in Brazil recently include America Latina Logistica and discount airline Gol.($1 = 2.85 reais).

(From Reuters, October 07, 2004)

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