Category: Equity

IPOs from two mid-cap banks and an educational company were expected to hit the market early this week in Brazil. Banco ABC is expected to bring a $365m IPO via UBS-Pactual and Itaú BBA Tuesday, according to Dealogic. The price range was BRL11.50-BRL15.50. Banrisul is also expected to bring as early as today an estimated $1bn offering via Credit Suisse and UBS-Pactual at a proposed range of BRL10.50-BRL13.50. Also Tuesday, an offering from Estacio Participações is expected to raise around $400m. Sole lead manager UBS-Pactual has announced a range of BRL32.50-BRL42.50.

Brazilian sugar and ethanol producer Acucar Guarani priced Friday a $360m equivalent BRL IPO through UBS Pactual. The initial range was BRL13.50-BRL17.50 and the deal came at BRL13.50, according to Dealogic. The data provider also showed the offer smaller than the $412m-$474m initially expected, and a day late. Gross fees were $13.53m. Bradesco and Calyon were co-managers. The Bovespa closed 1.17% lower Friday amid losses in global stock markets.

Brazilian companies were busy at the end of last week, raising over BRL2bn ($1bn) between them from IPOs. Real estate company MRV Engenharia, bagged BRL1.06bn from the sale of 40.8m shares at BRL26 apiece, at the top of the price guide. UBS led. Kroton Educacional, a privately held school operator, sold 10.6m shares at BRL39 via Morgan Stanley and Merrill Lynch to raise $416m. Triunfo Participacoes & Investimentos, a highway and harbor operator brought in BRL513m by selling 54m shares at BRL9.5 each via Credit Suisse. Textile manufacturer Cia Hering, meanwhile, sold 28.3m shares at BRL11.00 for BRL312m. Banco Itaú led. So far this year, Brazilian companies have already surpassed the total raised via share offerings on Bovespa last year: 39 companies have raised BRL36.4bn against BRL31.3bn from 26 IPOs last year.

Chilean salmon producer Multiexport Foods is seeking to raise up to $100m on Thursday when it floats around 15% of its stock on the local Santiago Stock Exchange. The offering, coordinated by local broker LarrainVial, aims to sell around 178m shares. The planned IPO will make Multiexport the second Chilean salmon producer to float its stock locally, joining Invermar, which went public in 2005 raising $22m.

Expected today in the IPO boom are Argentina’s Banco Patagonia and Brazilian beef producer Minerva. The latter is looking to raise up to $264m equivalent from the sale of ordinary shares in a BRL15.50-BRL21.50 range through Credit Suisse and Itaú, according to Dealogic. Patagonia is meanwhile scheduled to place just under $310m equivalent in a dual exchange issue through JPMorgan. Some $260m will be in Argentina and the rest in Brazil for retail. All are in Argentine pesos, according to Dealogic. Co-managers on Patagonia are Mercado de Valores de Buenos Aires and Patagonia Valores Sociedad de Bolsa.

Maple Energy, the Peruvian power firm, priced Friday a $55m equivalent IPO on London’s AIM, says Dealogic. Canaccord Adams and Mirabud were the leads, with Banco de Credito del Peru as co-manager. It sold 32.6m shares at 84p each. Maple is a diversified energy company with oil and gas assets.

Brazil’s Redecard IPO surged 27% on its first day of trading with volumes that eclipsed other Brazilian bluechips, according to a Bradesco BBI report. While CVRD, Petrobras and Bradesco saw daily volumes at BRL425m, BRL398m, and BRL192m, trading activity for Redecard clocked in at BRL1.54bn, more than three times CVRD. Unibanco, Itaú BBA and Citi led Redecard.

The Bovespa’s market capitalization reached $1trn and the average daily traded value was over $2.7bn in June, according to the exchange’s monthly bulletin. By comparison May daily volume averaged $2.0bn. The total volume traded in June was a record $54.5bn compared to $44.1bn in the previous month. The most active stocks in terms of trading value were: Petrobras ($5.1bn), CVRD ($4.1bn), Bradesco ($1.5bn), Usiminas ($1.1bn) and Unibanco ($1.1bn). In June, international investors’ total purchase at the Bovespa was $18.8bn, while total sales hit $19.9bn, totaling a net outflow of $1.1bn. In the six months through June, these investors’ purchases at Bovespa amounted to $83.1bn and the sales to $83.2bn, resulting in a net outflow of $65.5m.

Brazil’s rate of inflation, as measured by IPCA, remained unchanged in June at 0.28%, according to the national statistics agency IBGE, taking inflation for the 12 months through June to 3.7% from 3.2% in the 12 months through May. A rise in food prices in June was balanced by a fall in ethanol fuel. The benign inflationary environment should allow the Central Bank room for a further interest rate cut this month, say analysts.

UBS and Credit Suisse rank first and second in LatAm ECM underwriting, with $4.48bn and $3.83bn in volumes through July 6, according to Dealogic. UBS printed 25 deals, garnering 25.2% of the market, while Credit Suisse landed 18, with 21.5%. In third came JPMorgan, with eight deals and $2.37bn, followed by Merrill Lynch, with $1.87bn via nine deals. Citi came in fifth, with $1.67bn across seven offerings. Reflecting the importance of Brazilian flow in the overall ECM figures, Itaú BBA came in sixth in the region with $1.12bn across 10 offerings.