Cyrela, Trisul shape share sales

Cyrela, Trisul shape share sales

Equity Capital Markets Rule 400 Rule 476 Brazil United States

Brazilian real estate developers Cyrela Commercial Properties (CCP) and Trisul said in separate statements on Monday they have approved primary share offerings in both São Paulo and New York. Both companies are based in São Paulo.

CCP said it has hired Bradesco BBI as the lead underwriter with BTG Pactual, Itaú BBA, Morgan Stanley, Banco Safra and XP Investimentos as the other underwriters.

The company did not reveal how many shares it will sell, but will use close to 75% of the proceeds to develop new projects, 20% to pay off debt and 5% for IT investments, it said.

CCP also said that its current share price is not the "best indication" of the expected sale price, due to low liquidity. Shares in CCP rose 1.25% after the announcement to close at BRL16.99 ($4.08) on Tuesday.

Trisul said it would sell 30m new common shares to institutional investors in Brazil and the United States, although it added that it could increase the offer by 35% to 40.5m shares.

The company said last month it had hired BTG Pactual and Bradesco to advise on a possible share sale. Trisul's shares dropped 2.7% to BRL10.80 on Tuesday.

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