French retailer Carrefour SA's Brazilian unit has filed for an initial public offering that could raise 4.5 billion to 5.6 billion reais ($1.4 billion to $1.7 billion), making it Brazil's biggest listing in over four years.
In a statement, Boulogne Billancourt-based Carrefour suggested a price tag of 15 to 19 reais per common share of Grupo Carrefour Brasil SA. The IPO will take place in Sao Paulo Stock Exchange's strictest governance listing chapter.
At the top of the range, Carrefour Brasil would be worth 37.6 billion reais, twice the market value of GPA SA, controlled by archrival Casino Guichard Perrachon & Cie. Reuters reported in January that Carrefour aimed to price the unit's IPO at a minimum 25 percent premium to GPA.
The IPO should help Carrefour Brasil add financial muscle to take on GPA, whose food division has recovered amid sliding sales of appliances. Carrefour Brasil recently trumped GPA as Brazil's No. 1 diversified retailer.
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