Tupy Expands Float

Tupy has priced a BRL523m ($240m) equity follow-on, according to the CVM, boosting the Brazilian Iron parts maker’s float. In the deal, functioning in some ways as a “re-IPO,” the issuer is offering 29.9m primary shares at BRL17.50 each, including a 15% greenshoe. The price represents a 5.9% discount to Wednesday’s 18.59 closing price, though the shares, according to ECM bankers, are in relatively few hands and do not trade frequently – one of the problems the sale sought to correct. Shares were at BRL19.45 when the deal was re-filed in August following an earlier postponement. Tupy is raising funds to invest in expansion and in projects that will help lower costs. Banco do Brasil, Brasil Plural, BTG Pactual, Citi and Itau managed the sale. The auto parts specialist operates in Brazil and Mexico. Next up in Brazil, and in the region, for-profit education provider Ser Educacional is scheduled to close books today and price Friday morning an IPO targeting BRL700m. Peer Anima is to follow next week.