Petrobras to seek $6.8bn valuation for its distribution company in IPO

Brazil’s state oil giant Petrobras is going to seek a valuation of up to $6.8bn for its fuel distribution unit BR Distribuidora SA, according to Reuters.

Petrobras, the world’s most indebted oil company and holder of vast offshore resources, is in the midst of a wide-ranging asset sell-off to reduce its red ink.

In the case of BR Distribuidora it is offering a 25% stake in the company in an initial public offering (IPO) that is set to price on December 13.

Back in August, Petrobras injected the equivalent of $1.95bn in fresh capital into BR Distribuidora in order to improve its balance sheet and attract investors.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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