The period is marked by two debuts, mid-cap Tivit and a jumbo
Banco Santander do Brasil, both of which suffered from issues
related to size and valuation.
EQUITY: IPOs Get Reality Check
The equity markets roared back to life in the third quarter, with Brazil accounting for the vast majority of follow-on and IPO volumes.
In a welcome change from 2007, when almost anything bankers
threw out into the market seemed to stick, the buyside seemed
to be applying some much needed rigor to due diligence. Indeed,
issuers and investors had a hard time arriving at a consensus
on price, and transitions of new offerings into the secondary
have been rocky. As of mid-October, Tivit was 4.07% below issue
and Santander was down 3.66%, according to Dealogic.
Santanders BDR IPO was poised to take all honors in
this years equity market. Its 12.3 billion real float,
plus a likely greenshoe of 1.8 billion reais, made it the
largest IPO in LatAm history and among the biggest of the
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