Brazilian drug store chain Pague Menos BMFBOVESPA:PGMN3 is considering a share offering, it said in a securities filing on Friday, responding to a local media report that it was preparing such a move.
The potential offering would likely involve 70 million shares, Pague Menos said, adding that a final decision had not been made.
Shares in the company slipped around 9% in early Sao Paulo trading.
At Thursday's closing share price of 7.20 reais, the transaction would be worth around 504 million reais ($98 million). BTG Pactual and Itau BBA have been advising the firm, Pague Menos added.
($1 = 5.1624 reais)