Category: Equity

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.

Brazil’s fourth largest beef exporter, Minerva, filed with Brazil’s CVM to list an IPO of its shares on the Novo Mercado. Credit Suisse is coordinating. Proceeds are to expand production capacity and for possible acquisitions. Minerva will be the third Brazilian beef processor to list its shares on the local stock exchange. In March, Brazil’s JBS SA, which controls leading beef exporter Friboi, raised 1.6bn reais from an IPO, according to Dealogic. In April, Marfrig filed an intention with the CVM to list its shares. Bertin is also rumored to be interested in going public. JBS has the lead in the rapid expansion of Brazil’s beef sector. It announced Tuesday it is buying Swift, the third-largest U.S. processor of beef and pork, for $1.4bn, which should make it the largest beef company in the world.

Brazil’s investment funds administrator, Tarpon Investment Group, raised 401.5m Brazilian reais ($206.3m) from its initial public offering of shares on the Bovespa, according to Dealogic. Tarpon sold 18.25m shares at 22 reais each, the low end of 22-30 reais guidance. The shares are trading today in Brazil and with qualified foreign investors under 144a SEC rules. Credit Suisse led the deal. Tarpon is the second investment fund administrator to list its shares in Brazil. GP Investments raised 758.4m reais ($329.7m) in its June 2006 IPO, also through Credit Suisse.

Brazilian bank Paraná Banco has offered more information regarding its forthcoming listing via local Bovespa exchange. Paraná is to join the growing list of mid-sized banks seeking to float their stock on Bovespa. The IPO, via UBS, will comprise a primary offering of 37.8m preferred shares with an expected price range of between BRL14 and BRL18 per share. Trading is expected to begin June 14. The consumer credit bank specialist will join Nossa Caixa and Banco Pine in its plans. The shares will be sold in Brazil and to qualified foreign investors under 144A rules used by the SEC.

Brazilian investment manager Tarpon Investments, which is headquartered in Bermuda, plans to price its IPO as early as today, Tuesday, according to Dealogic. The company, which specializes in private equity funds and has BRL1.53bn under management, is hoping to raise BRL540m, or $275m. It will sell 21m Brazilian Depository Receipts, or Bovespa-listed shares designated for offshore issuers at a range of BRL22-30. Credit Suisse is leading.

Chilean air carrier Lan raised $181.16m via the sale of 11.24 million new shares on Friday, according to the Santiago Stock Exchange. The shares were priced at 8,401.00 pesos ($16.24) or $80.56 per ADS, better than originally expected. The increase in its share capital will be used to fund LAN’s expansion plans over the next four years, which have an estimated cost of around $1.8 billion. The airline has units in Chile, Argentina, Ecuador and Peru.

Stable food prices helped to keep Brazil’s inflation down to 0.25% in April, according to the national statistics agency IBGE. Inflation, as measured by IPCA, slowed from 0.37% in March helped by a marginal 0.03% price rise in foodstuffs. Annual inflation, meanwhile, rose from 2.96% to 3.0%, while cumulatively prices rose by 1.51%.

Brazilian Banco Daycoval will join two other mid-sized banks to list on Bovespa this year – Sofisa and Pine – after it filed with the securities commission, CVM, to launch an IPO of preferred shares later this year. UBS will coordinate the offering. The São Paulo-based bank booked revenues of $218m in 2006, a 60% rise over 2005 sales. Other mid-tiered banks in the pipeline include Banco Cruzeiro do Sul, Banco Bonsucesso, and Paraná Banco.