Tecnisa Sets Equity FO Date

Brazilian real estate developer Tecnisa has set February 2 as the pricing date for its equity follow-on, according to regulatory documents. Tecnisa plans to begin roadshowing January 19, and estimates its sale of 36m primary shares will bring in BRL387m, based on the December 27 BRL10.74 per share reference price given in its filing. Tecnisa shares have gained since, closing Friday at BRL11.30. A 15% greenshoe and 20% hot issue will also be available. Tecnisa is selling shares in order to increase its liquidity and raise funds for growth. It plans to spend half of the proceeds on land acquisition, 35% on construction costs, 10% on debt repayments and 5% on working capital. Itau is lead manager and bookrunner, with BTG Pactual, Credit Suisse, and Santander as bookrunners. Elsewhere in the sector, Brazilian homebuilder Direcional Engenharia and broker Brasil Brokers have also each indicated plans for a follow-on offering.