Estapar reopens IPO market in Brazil

Estapar reopens IPO market in Brazil

IPO Equity Capital Markets Coronavirus Brazil

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Allpark Empreendimentos, a car park operator that does business under the name Estapar, has priced the first initial public offering (IPO) in Brazil since February, reopening a market that had come to a halt during the coronavirus pandemic.

Estapar said it raised at least BRL300 million ($51.7 million) in the IPO by selling 28.6 million new shares for BRL10.50 each. The size of the deal could increase to BRL345 million if the bookrunners sell another 4.29 million new shares in the over-allotment option, commonly called the greenshoe.

The bookrunners are BTG Pactual, Bradesco BBI, Santander and BB Investimentos. 

Estapar had put the price range at BRL10.50 to BRL13.00 per share, looking to raise as much as BRL428 million from its debut on the B3 stock exchange in São Paulo.

After paying BRL11.7 million in commissions, it now expects to clear BRL289 million from the IPO, not counting the greenshoe, according to a securities filing on Thursday. Estapar said it will put the money into a 15-year street parking concession that it won in the city of São Paulo in December last year.

Brazil's IPO market has been heavily impacted by the coronavirus outbreak with scores of issuers cancelling or postponing planned offerings in the past two months, including mid-sized lenders Banco Daycoval and Paraná Banco, insurer Caixa Seguridade, homebuilder You Inc, truck rental company Vamos and waterway logistics firm Hidrovias do Brasil.