BB Seguridade IPO Back on

Books on Banco do Brasil’s carve-out of its insurance operations are already covered, according to people following the deal. The bank resumed the IPO of BB Seguridade on Wednesday, after regulators lifted a suspension on the deal. The bank plans to price the deal on April 25, two days later than originally planned. Investors who had already put in bids were allowed to pull their orders this week after the CVM suspended the sale targeting more than BRL9bn ($4.5bn), because of irregularities in the marketing process. The deal has already drawn enough attention to survive this hiccup, investors say. “I don’t think this will have any effect. This kind of thing happens. It’s a good that the CVM is being strict,” says a Sao Paulo investor considering the deal. The bank is selling 500m secondary shares at BRL15.00-BRL18.00 each, according to offering documents, indicating a BRL9.49bn deal at the midpoint if a 15% greenshoe is included. A 20% hot issue is also possible. All proceeds will go to Banco do Brasil. Banco do Brasil, BTG Pactual, Bradesco, Citi, Itau and JPMorgan are global coordinators, with Brasil Plural and Banco Votorantim joint bookrunners. The deal could end up being LatAm’s largest IPO since Santander Brasil raised $7.5bn in 2009. Next in the pipeline is the BRL400m-plus follow-on from Brazil Hospitality Group, scheduled to price Thursday. The deal is oversubscribed, according to people following it.