Lab Company Prints IPO at Midpoint

Fleury, the Brazilian diagnostics lab, has priced its IPO at BRL16.00, the midpoint of its BRL15.00-BRL17.00 range, raising BRL630m, assuming a 15% greenshoe is exercised in the coming sessions. The deal, comprised of 34.3m shares and 5.1m greenshoe shares, was said to be multiple times oversubscribed, claim executives close to the trade, though the midpoint pricing would suggest demand for the relatively small issue may have been cool. “I think it will end up trading well, and at a premium to DASA, because the management is better,” says one investor who chose not to participate in the deal. DASA shares closed at BRL55.20, up 4.2% Tuesday, outperforming the 0.1% drop of the Ibovespa. DASA stock trades at a forward P/E ratio of 55x, according to Economatica. Data for Fleury’s multiples was not available at press time. A second investor said he didn’t care to participate in the deal because of its relatively small size. One third of the proceeds from the offering are earmarked for acquisitions. Bradesco, JPMorgan and Morgan Stanley led the deal.