Adecoagro SA, a farmland venture in South America that counts billionaire George Soros as an investor, plans to raise as much as $429 million in an initial public offering in the U.S.
As much as 21.4 million new and 7.14 million existing shares will be offered for $13 to $15 each, the Luxembourg-based company said today in a filing to the U.S. Securities and Exchange Commission. A subsidiary of Qatar’s Doha-based sovereign fund, which already owns 6.5 percent of Adecoagro, may buy as much as $100 million of the stock.
The company’s main shareholders include Pampas Humedas LLC, an affiliate of Soros’ Soros Fund Management LLC, which owns about 34 percent and will reduce its stake to about 21 percent after the offering.
Adecoagro said it plans to use some of the proceeds to build a sugar-cane processing plant in Brazil and may spend about $145 million on “the acquisition of farmland and capital expenditures required in the expansion of our farming business.”
Adecoagro grows rice, coffee, soybeans, wheat and corn in 38 farms in Brazil, Argentina and Uruguay, according to the filing. The land is valued at a combined $784 million, the filing said. The company also owns rice and grain processing plants, a dairy operation, coffee plants, warehouses and two sugar mills.
Credit Suisse Group AG, Morgan Stanley and Itau Unibanco Holding SA are coordinating the sale. Including an over-allotment option, the share sale may reach $492.9 million.
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