TIM Set for Follow-on

Brazilian wireless operator TIM is scheduled to price today an equity follow-on that could reach BRL1.97bn ($1.04bn) in size, and would be the first Brazilian equity deal since July. The telecom plans to sell 219m shares, including a 15% greenshoe. With parent Telecom Italia exercising its rights to 66.94% of the sale, relatively little will hit the market, and investors and bankers away from the deal don’t expect much haggling over price. Shares closed Monday at BRL9.00, almost flat to the BRL9.04 close just before launch. The wireless operator is looking for funds to expand its infrastructure, being low on cash following the July BRL1.6bn purchase of broadband provider AES Atimus. Itau and Morgan Stanley are managing the sale.