(Adds details, background)
SAO PAULO Nov 30 Movida Participações SA on
Wednesday filed for regulatory permission to sell shares for the
first time in the São Paulo Stock Exchange, the second such plan
by a Brazilian car rental company this year.
In its securities filing, both Movida and controlling
shareholder JSL SA said they will place stock as part
of the initial public offering plan. None detailed terms of the
deal, the size of the transaction, the number of shares to be
offered or a suggested price tag for the stock.
The companies filed two days after larger rival Unidas SA
announced an IPO plan. The move underscored the
resilience of car renting despite Brazil's harshest recession in
eight decades, high unemployment and a slump in consumer and
Rental growth at Unidas and Movida has fared better than
expectations in the first half, signaling pricing flexibility
and a better use of current capacity.
Growing risk appetite among local investors and expectations
of a more business-friendly government following former
President Dilma Rousseff's ouster earlier this year are
bolstering IPO requests. Brazil's equity market, the biggest in
Latin America, has seen only two IPOs in the past two years.
That compared with 10 over the previous two years.
(Reporting by Guillermo Parra-Bernal; Editing by Chris Reese
and Jonathan Oatis)