Gafisa Advances Follow-On

Homebuilder Gafisa has set a date and issue size for its upcoming follow-on equity offer, whose proceeds are earmarked for land acquisitions, M&A, new launches, working capital and investment in existing projects. The company plans to issue 74m shares March 23. Using Monday’s closing price of BRL13.95, the base offering could result in proceeds of BRL1.03bn. The company says it may grant underwriters a 15% greenshoe of 11.1m shares, which could add another BRL154m in proceeds. A 20% hot issue is also an option, says Gafisa. Itau, JPMorgan and Votorantim are joint leads.