Deals of the Year 2011: 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.