Estacio Follow-on Opens Brazil ECM

Brazil’s Estacio has priced a BRL769m ($377m) equity follow-on, conceding a 6.4% discount in Brazil’s first equity sale of 2013. The education company is selling 18.3m shares, assuming a 15% greenshoe, at BRL42.00 each, according to the CVM. The price compares to Wednesday’s BRL42.75 closing level. The shares rose 1.79% in Wednesday’s session and are up nearly 5% since the transaction’s launch. The sale, heard oversubscribed, includes 3.6m secondary shares sold by Private Equity Partners. Estacio is raising funds for acquisitions and organic expansion. Bank of America Merrill Lynch, Credit Suisse and Itau managed the transaction. Estacio held its IPO in 2007 and last visited the equity markets for a BRL685m all-secondary share follow-on in 2010. Next up in Brazil is an IPO from IT provider Linx, targeting more than BRL400m and scheduled to price February 6. Next week will see the opening of the market for Mexican issuers, with a $1bn-plus follow-on from Fibra Uno Tuesday and $300m re-IPO from Cultiba Wednesday.