Tereos Internacional raised the maximum target of R$370m from a share issue to raise capital for investing in starch and ethanol projects in Brazil, China and Europe, its French-based parent company said.

Tereos Internacional, Brazil's third-ranked sugar and ethanol producer, said that its sale of up to 142.1m shares had been fully subscribed, nearly two months after it was launched.

The success of the sale came despite the shares falling below the R$2.60 issue price for much of the sale period, although the stock has recovered since mid-July, helped by the revived prospects for Brazil's cane harvest.

Industry group Unica noted a sharp improvement early last month in cane processing volumes in Brazil's key Centre South region, after a spell of unusually heavy rains which disrupted harvesting gave way to drier weather.

'Dynamic development'

Alexis Duval, the Tereos Internacional chief executive, said he was "delighted" with the capital raise.

The operation's "success… reflects the strong commitment of our historic partners", in both agricultural and financial sectors, to "the dynamic development of Tereos Internacional and their confidence in the company's future prospects", he said.

Projects which will be backed by the funds, equivalent to $183m, or E148m, include an ethanol plant in France, operations in Brazil for producing starch from corn and cassava, and a China-based wheat processing tie-up with Wilmar International which will open next year.

The share sale will also dilute to just below 70% the stake in the group owned by Tereos, the French based agricultural group.

Indeed, raising the free float to at least 25% had been an aim of the deal, to meet concerns by the Sao Paulo stock exchange over the liquidity of Tereos Internacional shares.

The shares closed 0.7% lower at R$2.69 on Tuesday.