Nutriplant Prices IPO on Bovespa Mais

Brazilian fertilizer company Nutriplant succeeded in pricing an IPO during what bankers are calling abysmal market conditions. The small-cap issuer offered 2m shares at BRL10, raising BRL20m in an offering that was largely thought to be defunct, given the buyside’s lack of interest in small, illiquid deals. Nutriplant, which was eager to raise the cash to conduct acquisitions in the sector, sought to tap investors interested in small growth companies, and was willing to take a haircut. The deal was originally filed with a price range of BRL14-BRL20, and ended up coming at 28% discount to the bottom of that range. The IPO also marks the beginning of the Bovespa Mais, a section of the exchange reserved especially for small-cap companies, with guidelines designed to increase transparency and liquidity for small stocks. Nutriplant will begin trading on the Bovespa Mais today, and a celebration to launch the Mais will be held at the exchange.