Panamericano Stumbles to Market

Brazil’s Banco Panamericano succeeded in pricing an IPO Tuesday, but raised 28% less than it had originally hoped for. The offering was slated to come at BRL12.50-BRL15.00, but it ended up coming at just BRL10.00. This resulted in a maximum raise of $443m assuming a full exercising of the over allotment option, versus $610m if the deal had come at the midpoint. IPO investors have been particularly cautious when it comes to real estate and mid-cap banks, since oversupply from each sector has caused deal fatigue. The buyside is particularly wary of new names and illiquidity. UBS Pactual, Itaú BBA and BBI had books on the sale. Panamericano is the 10th IPO led by UBS to price below the range this year, according to Dealogic.