Follow-Ons Worth BRL842m Boost ECM

Two Brazilian issuers succeeded in bringing follow-ons on Tuesday and Wednesday, contributing to a pick up in equity markets. Copasa, the water treatment and sewerage utility, managed to price BRL400m in secondary shares held by the state of Minas late Wednesday at BRL24.50 say bankers on the deal. That is a 2.9% discount to the Wednesday closing price of BRL25.50, and a 22.4% discount to the closing price prior to the announcement of the deal November 30. The offer, made up entirely of secondary shares, helped boost liquidity in the stock. Citi and BB Banco de Investimento led. The previous night, education company Anhanguera landed a follow-on that grossed BRL442m before a greenshoe. The shares were offered at BRL26.00, a 1% discount to the session’s close and a 5.4% discount to the last trade before the announcement of the deal on March 10. Credit Suisse, Merrill and Santander led.