In 2013, Latin companies preparing to list frequently found
their views on valuation were not shared by equity investors.
INITIAL PUBLIC OFFERING: BB Seguridade’s $5.7bn IPO
Banco do Brasil showed how a big IPO can get done at a high price amid a volatile market backdrop, opening a new sector for Brazilian equity investors in the process
Yet large deals for recognizable names were nevertheless
most likely to price at a level that satisfied both sides.
The $5.74 billion IPO of Banco do Brasil's BB Seguridade
insurance business in April met these requirements - and opened
up a new industry for investors in Brazilian equity.
Brazil's economy lost its shine some time ago, but the ranks
of the country's middle class are still expanding. Insurance is
one of the extras they can now afford, offering scope for the
industry to grow. Insurance penetration in Brazil, at 1.7%, is
well below developed markets. Premiums sold in Brazil rose
13.4% from 2011 to 2012, Banco do Brasil says.
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