Busy Week for Brazilian IPOs

A burst of IPOs and follow-ons is anticipated as companies rush to tap a market that is “hot and receptive to new issuers,” in the words of one LatAm ECM head at a global bank. The bulk of issues will come from Brazil, but there are also some rumblings from Mexico, Colombia, Chile and Peru. Sectors include infrastructure, financial services, meat packing and agribusiness. Four firms are set to raise over $1.2bn this week on the São Paulo Stock Exchange. Today, AGRA Empreendimentos Mobiliários, a real estate company, is looking to offer 79m shares at BRL7.00-10.00 via Credit Suisse to raise $330m. Wednesday, Banco Sofisa, a mid-tier bank, will look to raise $305m via UBS Pactual by selling 37m shares at BRL13.00-17.00. Thursday, Wilson Sons, a shipping company, is hoping to raise $297m by selling 25.3m shares at BRL10.00-13.50 via UBS Pactual and Credit Suisse. Also Thursday, Cremer, a textiles manufacturer is looking to raise $287m via the sale of 33.4m shares at BRL15.50-19.50 via Merrill and Credit Suisse. A follow on offering for Brazilian steel company Usiminas is set to price in Brazil the same day through underwriters Merrill and Credit Suisse. According to Dealogic, Brazilian firms have raised $6.61bn through 21 deals to date, compared to just two deals totaling $623m for Mexicans and one $193m follow-on for Argentina’s Pampa Holding. Peruvian miner Minera IRL raised $22m in its IPO on the LSE’s AIM in early April.