Brazilian oil company Petroreconcavo raises $221 million in IPO


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SAO PAULO — Brazilian oil company Petroreconcavo priced its initial public offering at 14.75 reais per share, according to documents posted on the securities industry regulator CVM website.

The pricing was below the original range, between 15.50 and 19.50 reais.

The company is raising 1.2 billion reais ($221 million), and will use part of the proceeds to pay for assets acquired from state-controlled oil company Petroleo Brasileiro SA. Petroreconcavo also expects to use part of the proceeds for future acquisitions.

Petroreconcavo will debut on the Brazilian stock exchange on Wednesday under the ticker RECV3.SA.

($1 = 5.4395 reais) (Reporting by Tatiana Bautzer Editing by Chris Reese)