Category: Equity

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.

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.

Helbor Empreendimentos, a small Brazilian real estate developer, and Agrenco, an offshore-based agriculture company, were slated to price IPOs late Tuesday. Things were looking far from rosy – in stark contrast to the Bovespa – underscoring investor preference for liquidity in these uncertain global times. Helbor slashed the low end of its price range to BRL13.00, from BRL16.00 earlier this month, and it is expected to come close to the bottom of that, say bankers close to the process. This would mean an equity raise of around BRL312m. Meanwhile, Agrenco, which had set a BRL13.00-BRL17.00 target band, was also expected to come near the low end, despite its larger size and better sector differentiation, to raise up to BRL960m. Bradesco BBI and UBS Pactual are leading Helbor, while Credit Suisse is running Agrenco. Underscoring the “size matters” equity argument, Thursday’s deal from Amil, a healthcare provider, is expected to do well, according to bankers away from it. The company could raise up to BRL1.6bn, according to Dealogic.

Brazil’s Bovespa Holding will this morning close the books on its jumbo IPO, the largest of the year for LatAm, which could raise as much as $3.7bn. By all indications the sale should be a blowout, according to a salesperson away from the book, who hears it 20x covered with more than 400 accounts participating. “It’s a phenomenal deal,” says a senior ECM banker away not working on the offer. He adds that exchange IPOs around the world have been extremely popular, and that this one in particular will be a large, liquid name, making it a benchmark in all respects. A $3.7bn size would be achieved if the offer prices at the top end of the updated BRL20.00-BRL23.00 range and the underwriters exercise the greenshoe. Goldman Sachs and Credit Suisse have joint books. UBS is the international manger and Itaú BBA and Bradesco BBI are joint lead managers. Co-managers include BB Securities, Deutsche Bank, HSBC and Santander. Proceeds will go to the secondary shareholders, brokerages, investment banks and individuals that hold seats on the Bovespa. Bovespa Holding also controls CBLC, the depository and clearing house.

Brazil’s Bovespa Holding will this morning close the books on its jumbo IPO, the largest of the year for LatAm, which could raise as much as $3.7bn. By all indications the sale should be a blowout, according to a salesperson away from the book, who hears it 20x covered with more than 400 accounts participating. “It’s a phenomenal deal,” says a senior ECM banker away not working on the offer. He adds that exchange IPOs around the world have been extremely popular, and that this one in particular will be a large, liquid name, making it a benchmark in all respects. A $3.7bn size would be achieved if the offer prices at the top end of the updated BRL20.00-BRL23.00 range and the underwriters exercise the greenshoe. Goldman Sachs and Credit Suisse have joint books. UBS is the international manger and Itaú BBA and Bradesco BBI are joint lead managers. Co-managers include BB Securities, Deutsche Bank, HSBC and Santander. Proceeds will go to the secondary shareholders, brokerages, investment banks and individuals that hold seats on the Bovespa. Bovespa Holding also controls CBLC, the depository and clearing house.

Helbor Empreendimentos, a small Brazilian real estate developer, and Agrenco, an offshore-based agriculture company, were slated to price IPOs late Tuesday. Things were looking far from rosy – in stark contrast to the Bovespa – underscoring investor preference for liquidity in these uncertain global times. Helbor slashed the low end of its price range to BRL13.00, from BRL16.00 earlier this month, and it is expected to come close to the bottom of that, say bankers close to the process. This would mean an equity raise of around BRL312m. Meanwhile, Agrenco, which had set a BRL13.00-BRL17.00 target band, was also expected to come near the low end, despite its larger size and better sector differentiation, to raise up to BRL960m. Bradesco BBI and UBS Pactual are leading Helbor, while Credit Suisse is running Agrenco. Underscoring the “size matters” equity argument, Thursday’s deal from Amil, a healthcare provider, is expected to do well, according to bankers away from it. The company could raise up to BRL1.6bn, according to Dealogic.

Direcional Engenharia, a Belo Horizonte, Brazil-based construction firm, has filed a Brazil IPO. The company builds and sells residential properties in the states of Rio, São Paulo, Amazonas, Brasília and Minas Gerais. If it goes public, it will join a very crowded pool of publicly traded real estate developers, though its geographic diversification away from São Paulo may give it some advantage. ABN AMRO Banco Real is leading the offering, one of the more unusual aspects of the transaction as the Dutch Bank has to date played a small role in the Brazil equity party.