Equity: Issuers Follow Petrobras
With Petrobras’ $70 billion capitalization out of the way, other LatAm equity issuers are cleared for takeoff.
The most optimistic ECM
bankers forecast $10 billion getting done in the last quarter.
There are even signs of life beyond Brazil.
Firstly, the market is
set for continued oil flow, even after an IPO was lost when
Repsol sold 40% of its Brazil unit to China’s
Sinopec for $7.1 billion. Bank of America Merrill Lynch, Credit
Suisse, Itaú and Santander were set to lead a float,
seen raising perhaps $4 billion in equity, before the issuer
In its place, HRT was expected to raise around 2.5 billion
reais from an IPO at the end of October via Credit Suisse, Citi
and Goldman Sachs. The Brazilian E&P company should be
followed by Karoon Gas Australia, owner of Brazil and Peru oil
exploration blocks, spinning off 30%-35% through Morgan
Stanley. Valuations of its LatAm assets vary, but the...
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