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在线翻译:
szdaily -> World Economy -> 
Busiest year for Brazilian IPOs since 2013 ends on flat note
    2017-12-18  08:53    Shenzhen Daily

BRAZIL’S strongest year for initial public offerings (IPOs) in four years finished on a flat note last week as one company canceled its plans and what promised to be the biggest listing of the year priced at the bottom of the range, showing the limits of renewed investor interest in the country.

Investors were hungry for shares of a Burger King franchisee and plowed enough money into the country’s main fuel distributor to raise a combined 7.2 billion reais (US$2.2 billion) last week — the busiest for new listings in Brazil since April 2013.

Yet the mixed results underscored the finite appetite for new offerings and rising anxiety about an unfinished reform agenda and unsettled political outlook.

Brazil’s benchmark Bovespa stock index hit a record-high earlier this year as the economy emerged from its worst recession in decades and President Michel Temer promised a series of market-friendly reforms, opening the best window for share offerings since 2013. Ten IPOs raised US$5.55 billion compared to nine issues that raised US$8.35 billion in 2013.

Petroleo Brasileiro SA raised 5 billion reais from listing subsidiary Petrobras Distribuidora SA on Friday but demand was crimped, investors said.

At the bottom-end of the target range, Petrobras Distribuidora’s enterprise value equaled around seven times earnings before interest, tax, depreciation and amortization, a common valuation metric known as EV/EBITDA. This was below the 11.4 multiple for private rival Ultrapar Participacoes SA.

“Of course in a better macro environment, the transaction would have been larger,” said a person at the state oil company.

Shares in the fuel distribution unit rose 6.7 percent in their debut to 16 reais, taking some of the sting out of pricing at the bottom of a suggested range of 15 reais to 19 reais.

“Petrobras decided to price it on the low end to get quality investors, long-only funds and not a lot of shorter term hedge funds,” said one source with knowledge of the process.

Investor enthusiasm for the offering waned in recent months as it became clear the government would not give up control of the company.(SD-Agencies)

 

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