BR Malls Set for Share Sale

Brazilian developer BR Malls is set to price an equity follow-on today that could top BRL600m. As it seeks funds to continue expansion, the shopping mall operator will hope to capitalize on demand for Brazilian retail exposure. The issuer’s shares are trading down slightly since the April 29 announcement that the company would seek a follow-on, closing at BRL16.60 Monday. BR Malls had closed at BRL16.93 prior to the announcement. The 34m primary shares on offer would raise BRL649m at that level, assuming the exercise of a 15% greenshoe. A 20% hot issue is also available. Proceeds are marked for acquisitions, the company says. The deal was the third to use a legal change last year that allows issuers with a minimum BRL5bn market cap and 3 year history as a public company to file and launch a follow-on simultaneously, and is the first to do so without announcing its intentions beforehand. Bradesco, BTG Pactual, Goldman Sachs and Itau are managing the sale.