BTG $2.2b Brazil IP0, 144A
BTG Pactual Targets $2.2 Billion In Brazil IPO
SAO PAULO — BTG Pactual SA, the investment bank controlled by Brazilian billionaire Andre Esteves, said Tuesday it is planning to raise between 3.49 billion Brazilian reais and BRL4.1 billion ($1.9 billion-$2.24 billion) through an initial public offering on the Brazilian Stock Exchange, or BMFBovespa.
The bank plans to offer a total of 121.5 million units, including an overallotment. Each unit is composed by one common share and two preferred shares.
BTG Pactual expects to price the units between BRL28.75 and BRL33.75. Trading is expected to begin April 26.
The company will sell the shares in Brazil and to qualified investors in the U.S. under 144A rules. It also will offer shares via Global Depositary Units, or GDRs, which will be listed on the Euronext Amsterdam.
Investors can reserve shares from April 11 to April 23.
The units will trade under the tickersymbol BBTG11.BR.
BTG Pactual itself will be the global coordinator of the operation. Bradesco BBI, J.P. Morgan, Goldman Sachs, Citigroup and BB Investimentos will be joint bookrunners.
Morgan Stanley, Deutsche Bank and UBS will be lead managers.
BTG Pactual will be one of the first IPOs in Brazil this year.
On Monday, local car-rental agency Companhia de Locacao das Americas SA, or Locamerica, said it plans to raise up to BRL573 million from an IPO, in order to take place until April 20.
The local equity market activity is posting a tepid performance in recent months, as a perceived deterioration in Europe’s debt crisis and its impact on the global economy hurt investors’ appetite for local assets, according to analysts.
In the second half of 2011 and in the first months of this year, the volatility caused by the international crisis led Brazilian companies to cancel or to postpone their planned IPOs. In February, Brazil Travel Turismo e Participacoes SA abandoned its plans to hold an IPO, due to lack of demand.