The IPO Buzz: Brazil Potash (GRO Proposed) Cuts IPO’s Size by 43.5 Percent to Raise $39.6 Million

Brazil Potash (GRO Proposed) slashed its IPO’s size by 43.5 percent to raise $39.6 million – down from $70.13 million initially – and changed its listing venue to the NYSE – American Exchange from the New York Stock Exchange – according to an F-1/A filing today – Monday, Nov. 25, 2024.  Brazil Potash is a pre-revenue mining company focused on potash, a major fertilizer. The company’s executive office is in Canada, where it is incorporated.

The IPO’s new terms call for Brazil Potash to offer 2.4 million shares – down from 4.25 million shares initially – at a price range of $15.00 to $18.00 – to raise $39.6 million, if priced at the $16.50 mid-point. 

Cantor, Bradesco BBA, Freedom Capital Markets and Roth Capital Partners are the joint book-runners. The co-manager is Clarksons Securities.

Brazil Potash is not profitable. The start-up has not generated any production revenue to date, the prospectus said. In its F-1/A dated Nov. 25, 2024, Brazil Potash disclosed a net loss of $26.9 million for the 12 months that ended Sept. 30, 2024.

In the prospectus, Brazil Potash described the company and its operations:

“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.”

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