BRL6.63bn IPO, 2007
The possibilities for equity issuance by Latin American
companies have expanded since Bovespa Holding's 2007 IPO. But
the deal's intricate structuring and its standing as one of the
most substantial IPOs to date from any exchange, put it top of
its class in Latin America. It required particular skill from
the stock exchange's top executives and bankers hired to
transform a complex partnership of dozens of broker-dealers
into a publicly traded entity with a single share class.
The 6.63 billion real ($3.68 billion) transaction was
multiple times oversubscribed and shot through a 15.50-18.50
real per share indications to price at the top of a revised
20.00-23.00 real range. Still, shares leapt more than 50% the
following day. Foreigners bought nearly 80% of the sale which
was managed by Credit Suisse and Goldman Sachs.
The deal was followed a month later by the 5.98 billion real
BM&F listing, and the two would agree to merge the
The Bovespa IPO was the brightest from a slew of such deals
in 2006 and 2007. There have been several standout deals since,
some considerably larger. These include a Petrobras follow-on
of which around $20 billion was sold publically, and BTG
Pactual, BB Seguridade and Santander Brazil and Mexico IPOs.
But none have matched the smooth execution of Bovespa's, nor
the complexity needed to list the Brazilian exchange that would
soon merge with another newly public company, BM&F.