Iguatemi Set for Equity Funds

Brazilian shopping mall operator Iguatemi is scheduled to hold an equity follow-on today that should raise more than BRL400m ($189m). The issuer plans to sell 16m primary shares, meaning the transaction would raise BRL451m at Monday’s BRL24.48 closing price if a 15% greenshoe is included. The share price has moved very little, up around 2.0%, since announcement in April. Iguatemi expects to spend half the proceeds on greenfield projects, 30% on upgrading existing shopping centers and 20% on acquisitions. Bradesco, BTG Pactual, Credit Suisse and Itau are managing the sale. It will hope to follow in the wake of peer Multiplan, which priced a well-received BRL705m follow-on in March. The deal kicks off Brazil’s contingent of equity issuance in the June-July window, and will be followed by Votorantim Cimentos, targeting an BRL8.0bn IPO June 18-20. Debuts from CPFL Renovaveis and Azul and a follow-on from MPX are to follow.