Smaller IPOs Struggle (1)

Helbor Empreendimentos, a small Brazilian real estate developer, and Agrenco, an offshore-based agriculture company, were slated to price IPOs late Tuesday. Things were looking far from rosy – in stark contrast to the Bovespa – underscoring investor preference for liquidity in these uncertain global times. Helbor slashed the low end of its price range to BRL13.00, from BRL16.00 earlier this month, and it is expected to come close to the bottom of that, say bankers close to the process. This would mean an equity raise of around BRL312m. Meanwhile, Agrenco, which had set a BRL13.00-BRL17.00 target band, was also expected to come near the low end, despite its larger size and better sector differentiation, to raise up to BRL960m. Bradesco BBI and UBS Pactual are leading Helbor, while Credit Suisse is running Agrenco. Underscoring the “size matters” equity argument, Thursday’s deal from Amil, a healthcare provider, is expected to do well, according to bankers away from it. The company could raise up to BRL1.6bn, according to Dealogic.