January 17, 2014
In 2013, Latin companies preparing to list frequently found their views on valuation were not shared by equity investors.
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. Pr
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