Top Brazilian ethanol producer files U.S. IPO

By | August 27, 2007
Cosan Ltd. has filed its intent to issue an initial public offering of Class A common stock. The company's goal is to raise $2 billion to expand its operations in Brazil. The company is to be listed on the New York Stock Exchange under the CZZ symbol following the completion of its offering. The company's stock is already publicly traded in Brazil.

According to its public filing with the U.S. Securities and Exchange Commission, Cosan will use $650 million of the proceeds to build a 240 MMgy greenfield ethanol plant in the state of Goiás in south-central Brazil. Another $500 million would go toward expanding the company's existing facilities, adding capacity to crush an additional 10.6 million tons of sugarcane annually. Five of the company's 17 mills would gain cogeneration systems at a cost of $325 million. Other funds would go toward the purchase of mechanical cane harvesters and agronomic research.