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Capital Markets

Brazilian bookrunners hailed as catalyst behind Gerdau deal success

Gerdau’s CFO cites the raft of Brazilian bookrunners as the reason for completing an international landmark transaction that won the company a Euromoney Deals of the Year award

Latin American markets promised much but delivered little in terms of equity transactions. Brazil, the traditional engine of ECM activity, flattered to deceive with a successful IPO by Arezzo in January. Then the market fell away as deal after deal has priced at the bottom of or below its pricing range. 

Gerdau follow-on
Value R$4,985 million ($ 3,141 million)
Date April 12 2011
Bookrunners Bradesco BBI, BTG Pactual and Itaú BBA
return to the Latin America Deals of the Year index

After-market performance was typically immediately bad but some deals clawed back lost ground through the year. Away from Brazil there was the helium-like IPO by Arcos Dorados. The deal priced above its range of $13 to $15, at $17, and then kept going, leaping 24.7%. But with Woods Staton, Arcos Dorados’s chief executive and controller, seeing his allocation of 2 million primary shares jumping in value the questions about conflict of interest in the pricing strategy dampens our consideration of the deal as one of the year’s best.

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