More Mid-Cap Brazilian Banks in the Equity Pipeline

Banco Industrial, a mid-market bank, has filed to go public on the Bovespa, via UBS Pactual with BBI as a co-lead. It will be the 10th bank to file this year. Others in the pipeline include Banco Fibra, which filed two weeks ago, and BicBanco, which is likely to be the next issuer from the sector. BicBanco will issue 62m shares, 42m of which will be primary shares at a yet undetermined price range. The average offer price for mid-market banks in Brazil this year has been BRL14.50, according to Dealogic, which would imply a potential raise of BRL900m for BicBanco, though no official price range has been released. UBS Pactual is leading, with BBI, Banco Fator and HSBC as co-leads. So far this year there have been seven mid-market bank IPOs in Brazil, according to Dealogic.