Shoe Retailer Arezzo Raises $158 Million in Brazil Share Sale

Brazilian shoemaker Arezzo Industria e Comercio SA raised about 834 million reais ($158 million) in an equity offering as it looks for additional acquisitions.

Shoppers hold Juanita Jo and Arezzo bags in downtown Rio de Janeiro
By Vinícius Andrade and Cristiane Lucchesi
February 04, 2022 | 09:40 AM
Reading time: <1 min.

Bloomberg — Brazilian shoemaker Arezzo Industria e Comercio SA (ARZZ3) raised about 834 million reais ($158 million) in an equity offering as it looks for additional acquisitions.

The company sold 10,125,000 shares at 82.35 reais apiece, a 0.8% discount to Thursday’s close, the shoemaker said in a regulatory filing, confirming an earlier Bloomberg News report.

Arezzo, which purchased fashion retailer Reserva amid the pandemic and is the sole distributor of the Vans brand in Brazil, will use proceeds for investments including the opening of new stores, distribution centers and potential acquisitions, according to the offering’s prospectus.

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Shares of Arezzo have climbed 11% in the past twelve months, compared to a 6% drop for the Ibovespa in the same period, counting on 12 buys, one hold and no sell ratings, Bloomberg data show. The firm is scheduled to release its fourth-quarter earnings on March 10.

Banks running the deal were Banco Itau BBA, Banco BTG Pactual, Bank of America, XP Investimentos CCTVM, Banco Santander Brasil and UBS BB Investment Bank.