The deal that everyone inside and outside of Brazil had been waiting for did not disappoint. BTG Pactual priced a 3.66 billion real ($1.95 billion) IPO, pushing on size, but not on price. Though demanded more than three times, the investment bank kept the deal in the middle of its price range, while using most of an overallotment option – a rarity among Brazilian deals in recent years. Investors, who found the tough-to-comp deal slightly on the expensive side, were pleased that the issuer was sensitive to aftermarket performance concerns when it could have pushed for a more expensive sale. Primary proceeds will go towards BTG’s expansion, and secondary shares – 20% of the total – were sold by investment vehicles representing investment firm JC Flowers and the Rothschild, Agnelli and Motta families. BTG was...
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