25 July 2007 00:28 [Source: ICIS news]
HOUSTON (ICIS news)--Shares in Brazil ethanol maker Guarani rebounded to close 0.61% higher at Brazilian reais (R) 13.18 ($7.12) in trading Tuesday after flopping Monday in an initial public offering debut.
Guarani debuted on the Sao Paulo Stock Exchange (Bovespa) on Monday at R13.01 in lacklustre trading, down from an initial price of R13.50 in an IPO which raised some R665m.
A local analyst attributed the drop to softening in ethanol and sugar prices, according to a report in the Brazilian press.
The same analyst expected Guarani to perform well in the long run “because of its solid fundamentals and the strength of the sugarcane sector,” the analyst was quoted as saying.
Guarani is the third ethanol maker to go public in ?xml:namespace>
The company intends to use the IPO funds to settle its recent acquisition of a mill in
A Guarani spokesperson declined to comment during a telephone interview late Tuesday.
Guarani processed 8.2m tonnes of sugarcane in the 2006-2007 harvest, churning out more than 164m litres of ethanol in the period.
The company is controlled by French group Tereos.
($1 = R1.85)
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