BM&F Launches IPO

Following on the heels of a blowout Bovespa IPO, BM&F launched Friday its equity offer. The sale of 230m common shares for the Brazilian futures and commodity exchange has a price range of BRL14.6-BRL16.5 and is expected to raise over $2.3bn. JPMorgan, Merrill Lynch and Morgan Stanley are global coordinators and Bradesco and Itau are working as bookrunners on the local side. Pricing is lined up for November 28. If it comes at the mid-point, it will price at 34.5x 2008 earnings, according to a banker on the 144a deal. The Bovespa IPO is trading 40% higher than where it launched.