CCR Follow-on Glides Through

CCR has priced 33m primary shares at BRL33.00 to raise BRL1.09bn in its follow-on Wednesday. The deal came at a 0.7% discount to the BRL33.25 finish, which was down 1.0% from Tuesday’s session. The Ibovespa was up 0.3% Wednesday, after having lost close to 3.0% in the previous session. CCR’s offering is heard to have garnered a book of over 2x the offer, a decent number for a follow-on. There is no hot issue, and an additional 15%, or 4.95m greenshoe shares could raise the company an extra BRL163m. “The market priced in the IOF and just moved on,” says a banker on it, referring to a largely unwelcome announcement Tuesday of a new 2% tax on inbound capital flows that shook the BRL, the Ibovespa and contributed to a sizable discount for Brookfield Incorporacoes’s follow-on priced the same day. If the rebound is indeed true, that bodes well for Iguatemi, which is slated to price today and Cetip and Cyrela, which are due next week. “CCR is perceived as a high quality company that is more of a defensive story,” says a banker, noting that it has a lower beta than, for example a smaller, less liquid name in a more volatile sector. “Brazil infrastructure is seen as a very attractive play right now, especially with all this World Cup and Olympics,” adds another banker. CCR’s offering was led by Itau BBA, with BTG Pactual and BofA-Merrill as joint leads.