FOLLOW-ON EQUITY OFFERING - Navigating Rough Waters

FOLLOW-ON EQUITY OFFERING - Navigating Rough Waters

Corporate & Sovereign Strategy Brazil

FFollow-on equity sales held up a bit better than their IPO counterparts, and certain blue-chip issuers were able to make use of them even when the IPO markets were firmly closed in the second half of 2011. Gerdau’s 4.99 billion real ($3.14 billion) follow-on in April stood out not only as the largest equity deal of 2011, but as a particularly complex structure involving two different share classes. The deal, managed by Bradesco, BTG Pactual and Itaú BBA, was the largest in Brazil since the previous year’s $70 billion Petrobras sale. It was also Brazil’s second-ever deal, after Petrobras, to make use of the EGEM status, a simplified faster regulatory procedure similar to the WKSI in the

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial