Banco Pan is set to sell up to R$1.35 billion of shares this week – and it appears to have timed the transaction to perfection.
The deal is technically a follow-on but, given the structural changes to the company and the illiquidity of the float, bankers are calling it a “re-IPO”. The bank – mainly owned by BTG Pactual and Caixa – is raising capital to fund a digital expansion that is driving its repositioning as a full service bank to lower-income segments in Brazil.
“This is a great time for financial services companies with growth stories to do follow-ons or IPOís, which is the case with Banco Pan,” says a capital markets banker in the financial services industry group at an international bank away from the deal.
“The [Banco Pan] deal is essentially launching a new company to the market and it’s a great story for investors – it has the right executives, the right entrepreneurs, they have deep pockets and they are trying to solve a big problem. But above all it has the most important ingredient for investors – the bank is going after a huge potential market, or total addressable market,” he says.
