Bovespa Bringing Blowout IPO

Brazil’s Bovespa Holding will this morning close the books on its jumbo IPO, the largest of the year for LatAm, which could raise as much as $3.7bn. By all indications the sale should be a blowout, according to a salesperson away from the book, who hears it 20x covered with more than 400 accounts participating. “It’s a phenomenal deal,” says a senior ECM banker away not working on the offer. He adds that exchange IPOs around the world have been extremely popular, and that this one in particular will be a large, liquid name, making it a benchmark in all respects. A $3.7bn size would be achieved if the offer prices at the top end of the updated BRL20.00-BRL23.00 range and the underwriters exercise the greenshoe. Goldman Sachs and Credit Suisse have joint books. UBS is the international manger and Itaú BBA and Bradesco BBI are joint lead managers. Co-managers include BB Securities, Deutsche Bank, HSBC and Santander. Proceeds will go to the secondary shareholders, brokerages, investment banks and individuals that hold seats on the Bovespa. Bovespa Holding also controls CBLC, the depository and clearing house.