Brazilian pet shop chain Petz plans an initial public offering (IPO) of shares to raise up to 3.4 billion reais ($611.79 million), it said in a securities filing on Thursday.

The company, controlled by private equity firm Warburg Pincus LLC, set a price range of between 12.25 reais and 15.25 reais per share, with the final price to be set on Sept. 9, the filing showed.

The company and its shareholders plan to offer 163,265,306 shares, but that could rise to 220,408,162 shares including overallotment options.

Petz said it will use the proceeds to open new stores and veterinary hospitals. Currently it has 110 stores. Depending on the final number of shares sold, Warburg Pincus’ stake could fall to between 20.82% and 5.49% from 55.1% currently, the filing said. The private equity firm first invested in Petz in 2013.

Petz posted sales of 731.6 million reais in the first half of the year, up 36.6% from the year earlier period, with net income of 22.1 million reais.

Investment banking units of Itau Unibanco Holding SA, Banco Santander Brasil SA, Bank of America, JPMorgan Chase & Co and Banco BTG Pactual SA will manage the offering. ($1 = 5.5575 reais) (Reporting by Carolina Mandl; Editing by Kirsten Donovan)

Source: Reuters

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