Category: Equity

Brazil’s Redecard, a credit card company jointly owned by Unibanco, Itaú and Citi, will this week launch a Brazilian roadshow for an IPO, set for the second week of July, that will raise at least $1.7bn. The company is looking to price 140.8m shares, plus an additional 35% in a greenshoe, at BRL20-BRL25. Selling shareholder Itaú has the option to vend an additional 15%, while bookrunners Unibanco (lead), Itaú BBA and Citi can exercise a 20% greenshoe. A Bradesco BBI report values Redecard at BRL15-BRL17bn once it goes public. Roadshow stops are scheduled in Europe and the US. This is the first credit card company to go public in Brazil and if executed as planned, will be the largest IPO in the country’s history. Brazil’s consumer lending market has ballooned in the past two years as interest rates have moved steadily south.

Four IPOs are set to price this week totaling more than $1bn, according to Dealogic. Brazilian transportation company Log-In Logistica Intermodal prices a $353.8m equivalent real issue today through UBS Pactual. The initial price range is BRL12.75-15.75. Brazilian real estate firm Ez Tec Empreendimentos e Participaçoes should price its IPO Tuesday with an initial range of BRL9-12 a share for the equivalent of $230m, also through UBS Pactual. Meanwhile, Peruvian financial services group Intergroup Financial Services is set to price a $286m IPO in Peru’s local market and the US 144a market Wednesday through leads Citi and Credit Suisse for an initial range of $12-$14. Finally, Banco Cruzeiro do Sul’s IPO prices Thursday with a range between BRL13.5-17.5 a share for up to$285.6m.

Shares in Paraná Banco, a mid-sized bank from Curitiba, which issued a $272m IPO Tuesday, fell on their first day of trading yesterday. The offering, which priced at BRL14 per share, the bottom end of the BRL14-18 range, dropped 3.57% according to the Bovespa. UBS Pactual and Credit Suisse led. Brazilian agricultural company SLC Agricola listed on the Novo Mercado Wednesday and raised $219.2m via its Bovespa listing and in a private placement in the US. The offering priced at BRL14, the midpoint of a BRL12-16 range. Credit Suisse and JPMorgan had books.

Chilean salmon producer Multiexport Foods is planning to list around 20% of its stock on the local Santiago Stock Exchange next month, local media reported. The firm is looking to raise $70m from the offering and will kick off its roadshow in the last week of June. Local broker LarrainVial will coordinate. 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.

Brazilian logistics operator Tegma Gestão Logistica is seeking to raise up to BRL646.4m from its planned IPO on Bovespa, the company said Tuesday. Tegma will issue 20.2m common shares on the Novo Mercado of the exchange. The transaction will be coordinated by JPMorgan.

Brazilian Banco Daycoval will join two other mid-sized banks to list on Bovespa this year – Sofisa and Pine – after it said it was looking to raise up to $1bn via its IPO. Goldman Sachs and UBS will coordinate the offering. The bank is hoping for between 14.50 reais and 19.50 reais per share for its 55.88m preferred shares.

Brazilian mid-tiered bank, Banco Cruzeiro do Sul, has unveiled details of its IPO, planned via Bovespa. The offering comprises 36.140 million preferred shares, according to the Bank. The expected price range is between 13.50 Brazilian reals ($6.92) and Brazilian reals 17.50 per share. Trading is expected to begin June 26, the bank said in a statement. UBS is coordinating.

Argentina’s Banco Patagonia, is preparing to list on the Bovespa and the Merval, to raise around $220m. The listing of BDRs for an IPO would be the first of its kind from Argentina. A partial NYSE-listing is also anticipated. JPMorgan is heard to have secured a mandate for the offering, which Patagonia has been alluding to for more than two years. Patagonia has a strong presence in the middle market, and like Banco Macro, it has grown significantly through acquisitions and organic expansion in the wake of the Argentine crisis of 2001-2002.

Brazil inflation, as measured by IPCA, rose by 0.28% in May, according to the national statistics agency IBGE, picking up from the 0.25% rise seen in April. Annual inflation rose from 3% in April to a six-month high of 3.18% in May, above market forecasts but not enough to stall a larger 50bp interest rate cut announced by the Central Bank Wednesday.

Brazilian mining and metals company MMX Mineração e Metálicos has delayed its planned listing on the Toronto Stock Exchange, expected for June 6, according to a company press release. The delay is a result of a structuring problem with the company’s global depositary receipts (GDRs), it said, without offering details.