Equity House of the Year: Goldman Sachs
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Goldman Sachs deepened its presence in Latin America over the past year, taking the lead role in some of the biggest transactions across multiple jurisdictions and industries, while participating in many of the region’s most notable and innovative offerings.
In all, Goldman raised $10.5 billion in 16 transactions since October 2017. It ended September’s league tables in first place.
Among the landmark deals was PagSeguro’s initial public offering on the New York Stock Exchange in January 2018. The payment service company raised $2.6 billion in the largest ever Latin American fintech offering and the biggest Latin American IPO in the last four years. It was significantly oversubscribed, with the offering priced a dollar above the initial range.
Goldman was also the lead bookrunner for PagSeguro’s follow on offering in June, raising $1.1 billion. It was the fifth largest Latin American FO and the third largest by a Brazilian issuer.
In Argentina, Goldman participated in four transactions that were greater than $200 million. This included the innovative $880 million convertible senior notes offering for MercadoLibre. The company secured the best pricing on a 10-year convertible in over a decade, securing a 2.00% coupon and a 35.0% conversion premium. The transaction was well received and met with strong demand that allowed for a one-day execution in the middle of the August slowdown.
In Mexico, Goldman participated in the IPO for CFE, the state-owned electrical utility, as joint global coordinator and joint bookrunner. The February 2018 offering was the first-ever by the Mexican state and the third largest Mexican IPO. The offering included a custom FIBRA E platform to enable CFE to equity fund future capital expenditure for the country’s power infrastructure. It also allowed investment in the cash flow from CFE’s assets without transferring ownership.
The IPO for Chile’s MallPlaza also stands out. It was the largest IPO ever in Chile and the biggest real estate IPO in Latin America since 2015. Goldman was the joint international bookrunner. The $530 million offering last July was almost seven times oversubscribed, with total demand of $3.6 billion.