Latin American deal of the year 2013: BB Seguridade
|BB Seguridade’s $5.74 billion IPO|
|Global coordinators and joint bookrunners||BB Investimentos, JPMorgan, Bradesco BBI, Itaú BBA, BTG Pactual and Citi|
|Joint bookrunners||Brasil Plural and Banco Votorantim|
|return to the Deals of the Year 2013 index|
After a lousy 2012 for Brazilian equities, followed by an unpromising start to 2013 and a deterioration in investor sentiment towards Brazil’s macroeconomic environment, it was perhaps surprising that the world’s biggest IPO of the year was from Brazil. And the spin-off of BB Seguridade – Banco do Brasil’s insurance division – was also one of the best-performing IPOs. Proof, if it were needed, that deals that are priced and marketed well succeed in Latin America’s largest market.
"[The sale of BB Seguridade had been] under discussion since 2008 as a way to unlock value for Banco do Brasil and to create an open, standalone capital structure for BB Seguridade, which was facing the opportunity for strong growth," says CFO Leonardo Mattedi. The strategy paid off: Banco do Brasil’s market value increased by 17.6% between the public announcement and the IPO pricing, resulting in an increase in the bank’s trading multiples from 6x expected 2013 earnings to 7.1x.