Category: Equity

Infinity Bio-Energy plans to IPO on the Bovespa in early 2008, a spokesman tells LatinFinance. The Bermuda-based Brazilian company is not yet disclosing how much it plans to raise. Proceeds will be used to develop cogeneration capabilities at its ethanol plants using sugarcane bagasse, investing its Central American activities, and expansion within Brazil.

Laep Investments, a Brazilian private equity company that holds Parmalat’s Brazilian assets, struggled to excite investors at its Monday IPO. The offering, initially peddled as 77.83m BDRs at BRL11.50-BRL15.50, was delayed three days and chopped to a BRL8.50-BRL11.50 range to reflect the less than warm reception by investors. It ended up pricing at just BRL7.50. Several domestic and international accounts LatinFinance spoke to said they were not participating, either because the company was small or because the business model was not compelling. Laep, an offshore entity, is proposing to use some of the IPO revenues to build an integrated milk processing company, a project with an unproven track record. UBS Pactual had the books, with underwriters Agora Senior Corretora de Valores and Banco Safra. The Laep flop is further evidence of pushback by investors to lesser quality or off-the-run Brazil names and suggests trouble ahead for some IPOs in the pipeline. Laep specializes in acquisition and turnarounds of Brazilian companies involved in food production and distribution. Laep is based in Bermuda.

Unidas, the Brazilian subsidiary of Portugual’s Solucoes Automoveis Globais, has filed to IPO on the Bovespa. The timeline and expected size were not disclosed. UBS Pactual and Itau are joint bookrunners.

Laep, the offshore Brazilian-run private equity firm whose main holding is Parmalat Brasil, has pushed back pricing of its IPO. It was scheduled for Thursday and will likely hold until Monday, say people close to the depository receipts offering. Bankers have been vying for investor attention in the midst of a crowded IPO calendar in the wake of the biggest deal of the year so far, the Bovepsa, which Wednesday raised $3.13bn. Laep had initially said it would look to price 78m BDRs at BRL11.50-BRL15.50, according to Dealogic. UBS Pactual is leading.

Amil, one of Brazil’s largest healthcare service providers, was expected to price late Thursday an IPO. The company was looking to sell 100m shares at BRL13.50-BRL18.50, with bankers on the deal expecting strong interest. A banker away from the deal said it had settled at BRL14.00. Also expected to close books was Brasil Brokers, a Brazilian real estate broker looking to sell 736,000 shares at BRL950-BRL1,200, according to Dealogic. Doubts swirled around the offering as it was the latest of a long string of small real estate companies looking to sell shares, the last few of which came at hefty discounts to the proposed ranges. Credit Suisse and Morgan Stanley had joint books.

Amil, one of Brazil’s largest healthcare service providers, was expected to price late Thursday an IPO. The company was looking to sell 100m shares at BRL13.50-BRL18.50, with bankers on the deal expecting strong interest. A banker away from the deal said it had settled at BRL14.00. Also expected to close books was Brasil Brokers, a Brazilian real estate broker looking to sell 736,000 shares at BRL950-BRL1,200, according to Dealogic. Doubts swirled around the offering as it was the latest of a long string of small real estate companies looking to sell shares, the last few of which came at hefty discounts to the proposed ranges. Credit Suisse and Morgan Stanley had joint books.

Laep, the offshore Brazilian-run private equity firm whose main holding is Parmalat Brasil, has pushed back pricing of its IPO. It was scheduled for Thursday and will likely hold until Monday, say people close to the depository receipts offering. Bankers have been vying for investor attention in the midst of a crowded IPO calendar in the wake of the biggest deal of the year so far, the Bovepsa, which Wednesday raised $3.13bn. Laep had initially said it would look to price 78m BDRs at BRL11.50-BRL15.50, according to Dealogic. UBS Pactual is leading.

On the flip side, and as predicted, Bovespa Holding’s IPO was a roaring success. The exchange priced 250m shares at BRL23.00, at the top of an upwardly revised range of BRL20.00-BRL23.00, as investors clamored for a chance to participate in the region’s biggest and most high profile deal of the year. The offer raised BRL5.76bn, making it the biggest of 2007 so far. “It’s an interesting deal because its profit is tied to the country’s economic growth, which is fueling activity on the exchange,” Ronaldo Patah, head of Unibanco Asset Management’s equities division, tells LatinFinance. “The more trades and the higher the index, the better it will be for [the Bovespa’s] profits.” Goldman Sachs and Credit Suisse had joint books, UBS was lead manager for the international portion, and Itaú BBA and Bradesco BBI were co-leads.

UAB Motors and Tempo Participacoes have filed to go public on the Bovespa this week. UAB Motors is an autoparts maker that services Brazil’s largest manufacturers, including Volkswagen, Ford, GM and Fiat. JPMorgan is leading that offering. Tempo Participacoes, a marketing and consulting firm, has tapped UBS Pactual for its offer.

On the flip side, and as predicted, Bovespa Holding’s IPO was a roaring success. The exchange priced 250m shares at BRL23.00, at the top of an upwardly revised range of BRL20.00-BRL23.00, as investors clamored for a chance to participate in the region’s biggest and most high profile deal of the year. The offer raised BRL5.76bn, making it the biggest of 2007 so far. “It’s an interesting deal because its profit is tied to the country’s economic growth, which is fueling activity on the exchange,” Ronaldo Patah, head of Unibanco Asset Management’s equities division, tells LatinFinance. “The more trades and the higher the index, the better it will be for [the Bovespa’s] profits.” Goldman Sachs and Credit Suisse had joint books, UBS was lead manager for the international portion, and Itaú BBA and Bradesco BBI were co-leads.