Monday, January 11, 2010

Foreigners Still Flocking To Brazil Snatch 75% of Fleury's IPO

Brazilian newspaper O Esado de Sao Paulo has just reported the resul of Brazil's newest IPO. What is particularly newsworthy is not the dollar amounts, but the percentage that was subscribed by foreigners.

Today they bought 75.34% of the shares distributed in the initial public offering of Fleury Laboratory, Brazil's biggets labl, which sold for $630.233 million, with the record of 39,389,570 shares. The 167 foreigners bought 29,674,972 shares.

Of this total, 2,632,700 shares were subscribed by Morgan Stanley or its conglomerate of companies as a way to hedge (protection) for transactions with equity derivatives held abroad. The bank also endorsed additional 900,000,000, acting on behalf and for their customers, as well as to hedge derivative transactions of shares held abroad.

168 funds also oarticipated in the offering, snatching 6,161,900 shares (15.64% of total), 4,631 individuals, who purchased 3,244,398 roles; 168 investment clubs, with 206,067 shares, followed by an private pension, with 625 shares.

The 103 members, directors and employees purchased 101,608 shares. Banco Bradesco BBI was the lead manager of the offering, along with Morgan Stanley and JPMorgan.

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