Brazilian equity markets are poised for a boost with four transactions scheduled to price in the next week.
Power generator Alupar was building order books on Tuesday, ahead of a potential $220m follow-on offering on Wednesday, while the Qatar Investment Authority (QIA) prepared to sell $800m to $900m in shares in Santander Brasil on Thursday.
Azul Linhas Aereas is expected to raise more than $500m in a long-awaited IPO next week, while the e-commerce sporting goods store Netshoes has set a price range of $18 to $20 per share for the sale roughly 9.5m shares, scheduled to price on April 11, equity capital markets bankers said.
One banker said Brazilian equity flows now make up 16% of total emerging markets fund flows, up from 10% five months ago.
“The good thing about these upcoming deals is that they are all in different sectors, so you hopefully won’t have too many of the same investors chasing the same stock,” he said. “Most of the companies pricing deals have good stories as well.”
Azul has tried twice in two years to go public. A second banker said investors are confident in Azul’s business and “know everything they need to know about the company this time around.”
The bookrunners on the Santander Brasil share sale are confident that the full allotment of shares will be sold, owing to a “motivated seller” in the Qatari sovereign wealth fund.
“[QIA] are not exiting completely,” a third banker said. “So this got a lot of investors interested in the stock.”