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
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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