The IPO Buzz: Brazil Potash (GRO) Downsizes IPO & Prices it at $15.00 – Low End

Brazil Potash (GRO) trimmed its IPO at pricing to 2.0 million shares and priced the deal at $15.00 – the low end – to raise $30.0 million on Tuesday night, Nov. 26, 2024. At pricing, the mining company cut the IPO’s size by 400,000 shares – or 16.7 percent – and sold the deal at $15.00, the bottom of its $15.00-to-$18.00 price range. Brazil Potash shares are expected to start trading Wednesday, Nov. may price its small IPO TONIGHT – Tuesday, Nov. 26, 2024 – to trade Wednesday, Nov. 27, 2024 – on the NYSE – American Exchange.

Cantor, Bradesco BBA, Freedom Capital Markets and Roth Capital Partners are the joint book-runners.

The cut in the IPO’s size at pricing was the deal’s second cut in two days. On Monday, Brazil Potash cut its IPO’s size by 43.5 percent – to $39.6 million – down from $70.13 million initially – in an F-1/A filing dated Nov. 25, 2024. In that filing, Brazil Potash also switched its listing venue to the NYSE – American Exchange from the NASDAQ. The deal was carried over from last week.

Brazil Potash intends to use the IPO’s proceeds to help it develop its potash-mining site in the Amazon. The Canadian company, whose executive offices are located in Toronto, described its Brazilian mining operations in the prospectus:

“We are a mineral exploration and development (E&D) company with a potash mining project, known as the Autazes Project, located in the state of Amazonas, a state in Brazil. We are a pre-revenue company that has not yet begun any mining operations. We are focused on getting the required permits and environmental licenses to start construction on the mining site. We plan to extract and process potash ore from an underground mine and sell the potash fertilizer within Brazil. We intend to cut the country’s heavy reliance on imported potash. 

“Our technical operations are based in Autazes, Amazonas, Brazil, and Belo Horizonte, Minas Gerais, Brazil. Our corporate office is in Toronto, Ontario, Canada. 

“Once our operations commence, our operating activities will be focused on the extraction and processing of potash ore from our underground mine and selling and distributing the processed potash in Brazil.”

The company is not profitable. For the 12 months that ended Sept. 30, 2024, Brazil Potash reported a net loss of $26.9 million on no revenue.

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