Smiles Up, Seguridade Down in First Session

Last week’s pair of large well-bid Brazilian IPOs had contrasting fates in their first day of trading. Smiles, which raised BRL1.13bn ($565m) but priced near the low end of the range, was up 6.0% to BRL23.00 Monday. BB Seguridade, meanwhile, sank 2.4% to BRL16.60, after pricing its BRL11.48bn IPO near the top of its range last week. The carve-out of Banco do Brasil’s insurance business drew 3x demand, and was bought 65% by international investors. Smiles, the mileage reward business of airline Gol, was multiple times oversubscribed. Brazil’s Bovespa was up 1.17% Monday.