Multiplus Sags in Trading Debut

Investors dumped shares of TAM mileage program manager Multiplus Friday, the first day of trading for the company that priced an IPO last week. Shares of the debutante sank 9.4% Friday, underperforming the Ibovespa which closed 1.8% lower. The company priced at BRL16.00, 24% below the midpoint of its targeted range. Proceeds totaled BRL724m, including a greenshoe. A New York-based LatAm equity investor says the company should be pleased it priced at all, and notes had it waited another day, it may have not made it out. Brazilian issuers are 2 for 2 so far this year in grossly undershooting their targeted pricing ranges. Aliansce, the shopping mall manager, priced its IPO 22% below its targeted midpoint. In addition 3 others have canceled deals, including M. Dias Branco and Metalfrio, both for follow-ons, and IMC which chopped an IPO on Friday.