BMG, Locamerica invite investors to IPO
December 6, 2018 |
Brazilian bank could earn as much as $675m from an IPO, while the car rental company looks to raise $355m from a follow-on offering
Banco BMG and Locamerica have both gone on the road to pitch their upcoming IPOs to investors, LatinFinance has heard.
BMG could earn BRL2.27bn ($587m) from its debut on the B3 stock exchange in São Paulo if it prices its shares at the top end of the target range, according to securities filings.
The bank has offered to sell at least 166m shares, with 140m shares in a primary offering and 22.3m shares in a secondary offering. The underwriters could buy an additional 24.3m shares through the greenshoe option, which would take BMG's IPO to as much as BRL2.61bn.
JPMorgan is leading the share sale with Itaú BBA, Brasil Plural, XP Investimentos, Citi and BB Investimentos as the other underwriters. The deal is scheduled to price on December 17.
Locamerica has also scheduled investor meetings to present a follow-on equity offering for 38m shares, divided between 31m shares in a primary offering and 7m shares held by Pátria Investimentos, BNY Mellon and the brokerage firm Mundinvest. Itaú BBA, BTG Pactual, BAML, Banco Votorantim, and Banco do Brasil are the bookrunners on the deal, a source has told LatinFinance.
The car rental company, which agreed to buy rival Unidas in December last year for around BRL2bn, could earn BRL1.37bn from the sale, based on Wednesday's closing share price of BRL35.99. Locamerica went public with a BRL314m IPO in April 2012, when it priced 34.9m shares at BRL9, well below the target range of BRL11 to BRL14.
BMG and Locamerica follow the local healthcare provider Notre Dame Intermédica, which is shopping a follow-on offering of 87m shares from its controlling shareholder, Bain Capital. Rede D'Or and Tivit are also reportedly preparing IPOs as the Brazilian market prepares to face a rush of equity deals in 2019.