Gerdau Lands $2.6bn in Jumbo Equity

Brazilian steelmaker Gerdau raised $2.4bn in a multi-part equity follow-on last week, the biggest equity offering of the year. It stands to get an additional $225m if leads succeed in exercising a greenshoe. Metalurgica Gerdau, the parent company, got BRL1.37bn by selling 11.1m shares at BRL78.35 each. Subsidiary Gerdau SA raised BRL2.65bn through the sale of 27.3m units at BRL60.30. That includes 313,761 ADRs offered at $36.00. Both the Metalurgica and Gerdau SA offerings include portions of ordinary shares, which holders issued to avoid self-dilution. The more liquid preferred shares, however, made up the bulk of the offering.