Category: Equity

Brazilian real estate developer Lopes Consultoria de Imovéis (Lopes) says it has raised $222 million (474.7 million reais) from its listing on Bovespa’s Novo Mercado last month. The company joined the growing band of real estate companies lauching IPOs on the exchange. Since late 2005, five companies in the sector have raised financing via share offerings on the exchange with several more awaiting approval from the local securities commission. Lopes made a secondary offer of 23.736 million shares, more than initially planned, with 16.867 million bought by foreign investors. The shares were sold in Brazil and to qualified foreign investors, under 144A rules. Banco Pactual led the transaction.

Brazilian paper and pulp company Suzano Papel e Celulose is to make a secondary share offering via Bovespa. Suzano Holding, the company’s controlling shareholder, will sell 2.65 million preferred shares, while shareholder BNDESpar will also sell an undisclosed amount. The shares will be sold in the domestic market and also under 144A rules in the US. Credit Suisse will act as lead coordinator.

Brazil’s annual inflation slowed in November, dropping to 3.02% from 3.26% in October, as measured by the IPCA index. On a monthly basis, the index rose 0.31% compared with 0.33% in the previous month according to the IGBE, the national statistics bureau. Inflation for the first 11 months of the year was 2.65%, versus 5.31% for the same period last year. Big risers during the month were foodstuffs (1.05%), cigarettes (4.63%); the costs of fuels, electricity and medicine fell.

Brazil’s IPCA inflation index is expected to record a 3.2% increase in 2006, rising to 4.1% in 2007 and 4.3% in 2008, according to Henrique Meirelles, governor of Brazil’s Central Bank. This slight growth is much better than in previous years, and Meirelles, speaking at an EMTA panel in New York, boasted many other positive macro factors that are contributing to a better growth outlook. Besides a better legal and institutional framework, Meirelles referred to positive debt dynamics, flexible exchange rate and improvement in the balance of payments that are all contributing to what he terms a “stability dividend”. He added that Central Bank officials were currently defining policy for the next Lula administration and would look to boost foreign investment. “The priorities are fostering investment, public and private. That’s our challenge … and keeping price stability,” said Meirelles.

Argentine agrochemicals company Insumos Agroquímicos (Insuagro) will become the second SME to list on the Buenos Aires Stock Exchange, when it floats its stock towards the end of the month. The company kicked off its domestic roadshows in Buenos Aires, and is looking to drum up interest in the sale of 2 million shares in an IPO it hopes will raise 1.5 million pesos ($0.5 million). The shares, which represent 18.8% of Insuagro’s capital, are looking to price between 0.78 and 0.81 pesos and will be placed by local brokers Cordeu y Benedit. Insuagro will be the third company in as many weeks to list on the local stock exchange after six years without any IPOs. It will also be only the second firm to list on the newly launched SME board at the exchange. The offering has been in the pipeline for several months.

Mexican automobile finance company NR Finance has filed with the Mexican Stock Exchange to issue up to 10 billion pesos ($922.5 million) of revolving notes (certificados bursatiles). The 60-day notes will be denominated in pesos or inflation-indexed pesos (UDIs). The Sofol (limited financial entity) is currently in the process of becoming a Sofom (multiple financial entity). NR Finance México was created in September 2003 for the Mexican market following the formation of the Renault Nissan Alliance. By 2005 it was the third-largest auto financing company in the local market.

Brazilian medical supplies manufacturer Cremer has said it is cancelling its proposed initial offering of shares via Bovespa. It offered no explanation for cancelling the planned primary and secondary share offerings.

Argentine sportswear company DACSA Sportmix will become the first SME (PyME in Spanish) to list on the new board at the Buenos Aires Stock Exchange set up for small and medium-sized enterprises. It will also be the first locally owned company to list since 2000 following Italian-owned Socotherm’s listing on the main board Thursday. Puente Hermanos is leading the offering. The inauguration of the Exchange’s PyME board has been much anticipated with several companies in the line-up to list.

Brazilian property developer and construction company Gafisa is to make a new primary and secondary offering of shares, including ADRs. The company launched its IPO on Bovespa in February, raising $433 million from the sale of 400 million shares. Merrill Lynch will coordinate the transaction. The company gave no further details about the new listing.

Socotherm Américas, a regional subsidiary of the Italian company Socotherm, became the first company to launch a true IPO on the Buenos Aires Stock Exchange in almost six years, when it listed 15 million shares Thursday. The share sale, representing around 17.5% of its stock, raised $35.7 million, just short of expectations. Banco Río de la Plata and HSBC led the transaction. The Argentina-based subsidiary, which serves the energy transportation industry, hoped to raise around $40 million via the IPO to fund plant construction in Venezuela and the Gulf of Mexico, and increase operations in West Africa.