Cyrela Joins Crowded Equity Field

Brazilian real estate developer Cyrela has gotten board approval for a sale of 51.5m shares, equivalent to an estimated BRL771m, it says in a statement filed with the CVM. The move confirms the rumblings, reported earlier this week by LatinFinance, that the company was planning to tap ECM. It is heard to have hired Itau BBA and Credit Suisse to lead the transaction. While Cyrela is among the largest Brazilian homebuilders by volume and market cap, it will have to make a strong case to investors who, by the time it issues stock, will have been shown as many as 5 other equity deals from Brazilian homebuilders, including Multiplan, which is scheduled to price Thursday, PDG Realty, Brookfield, Rossi and Direcional.