Category: Equity

Brazil’s state-owned oil company Petroleo Brasileiro SA (Petrobras) has increased its weighting in the benchmark Bovespa index from 7.34% to 8.97% and is now only barely 1 percentage point off the index leader Tele Norte Leste Participações SA (Telemar), whose weighting dropped from 9.31% to 8.33%. The revised stock weightings were announced yesterday, Thursday, and will take effect on 2 January. The index is rebalanced every four months.

Peruvian energy provider Enersur, an affiliate of French group Suez, has raised $77 million via a stock floatation on the local exchange. The IPO saw shares sold at 7.6 soles ($2.24) per share and represented just over 17% of the company’s capital.

Inversiones Aguas Metropolitanas (IAM), Chile’s largest drinking water supplier, has issued Chile’s largest IPO to date, with 80% of the total offering taken up by international investors. The company, which is an affiliate of Aguas de Barcelona (Agbar), raised $91.8 million in the local market and $306 million internationally as ADRs. UBS Investment Bank acted as sole global coordinator and sole international bookrunner. The local tranche was arranged by Celfin Capital, Banchile and Santander Investment.

Brazilian sugar producer Cosan has raised 770 million reais ($350 million) in its IPO, exceeding expectations. Cosan achieved a share price of 48 reais per share, above the 40-46 reais originally expected. The company, the world’s second-largest sugar producer, plans to use the funds raised for expansion and acquisition. The sale was arranged by Morgan Stanley and Credit Suisse First Boston.

The first securities certificate bringing together a group of stocks into one tradable unit began trading on the Buenos Aires Stock Exchange yesterday, Thursday. The Macc (Merval Acciones) combines the top eight stocks on the Merval local index into one financial instrument.

Petroquímica Argentina SA (PASA) became the first company to inaugurate the new PyME board on the Buenos Aires Stock Exchange, to help small and medium-sized companies to raise money via the stock market. PASA hoped to raise around $3 million by listing between 15% and 20% of its capital. At least six firms with turnover of between 50 and 200 million pesos have so far signed letters of intent to list on the new board.

Ecuador is planning IPOs of two state-owned telecoms companies — Andinatel and Pacifictel. Shares of the fixed-line operators will be sold to the public via the local exchanges in Quito and Guayaquil. Privatization of the companies has been tried before but failed in the face of fierce employee and union resistance.

Chilean salmon producer Invermar has raised $22 million through listing 23% of its stock on the Santiago Stock Exchange. Invermar is part of local family-controlled food group Invertec. The company will use the money raised to help with expansion. It plans to focus on the Asian market, in particular China.

Canadian mining company Aur Resources Inc has said it plans a secondary listing on the Santiago Stock Exchange in Chile. It would be the first foreign company in this sector to do so. The company already lists on the Toronto Stock Exchange. Aur Resources controls two mines in Chile – Quebrada Blanca and Andacollo. There is currently only one local mining company listed on the exchange.

Stockholm-based telecoms services provider Ericsson has won the contract to be the exclusive GSM network provider for Movistar Uruguay, the mobile phone operator belonging to Spanish group Telefónica Móviles.