Brazilian Lands Follow-on Funds

Brazil’s Iguatemi has priced a BRL432m ($222m) equity follow-on, coming at a 2.2% discount. The shopping mall operator offered 18.4m primary shares at BRL23.50 each, including a 15% greenshoe, according to the CVM. The price compares to the BRL24.02 closing in Tuesday’s session, during which the share lost 1.9%. Iguatemi expects to spend half the proceeds on greenfield projects, 30% on upgrading existing shopping centers and 20% on acquisitions. Bradesco, BTG Pactual, Credit Suisse and Itau managed the transaction. The deal kicks off Brazil’s contingent of equity issuance in the June-July window, and had been expected to have little problem pricing. A bigger test will be the IPO of Votorantim Cimentos, targeting an BRL8.0bn June 18-20. Debuts from CPFL Renovaveis and Azul and a follow-on from MPX are to follow. Iguatemi brings the region’s ECM volume this year to $19.74bn from 40 deals, according to Dealogic, well ahead of the $8.37bn raised in the corresponding period in 2012.