Deals of the Year 2011: Gerdau follow-on
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Deals of the Year 2011: Gerdau follow-on

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

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.

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. Another notable IPO was the stop-and-start IPO of Mexican real estate trust Fibra Uno, which closed in March.

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