Tecnisa Gets BRL414m Follow-on

Brazil´s Tecnisa has raised BRL414m in an equity follow-on, according to the CVM. The real estate developer priced 41.4m shares at BRL10, representing a 0.01% discount (BRL0.10) to the previous BRL10.10 closing price. The total includes the exercise of a 15% greenshoe on top of a 36m share base deal. Shares closed down at BRL9.70 Wednesday. Tecnisa sold the shares in order to increase its liquidity and raise funds for growth, following a trend for many in the real estate sector. It plans to spend half of the proceeds on land acquisition, 35% on construction costs, 10% on debt repayments and 5% on working capital, it says. BTG Pactual, Credit Suisse, Itau and Santander managed the sale. Real estate shop Brasil Brokers is scheduled for a follow-on today, through Credit Suisse, Morgan Stanley and HSBC. The 21.8m share base deal would raise BRL176.8m if done at Wednesday’s BRL8.11 closing price.