• Categories
  • Archives

With Santander’s IPO Brazil Is Eldorado All Over Again

Santander Bank Spanish banking giant Santander's Brazilian unit has raised 14.1 billion reais, approximately 8.1 billion US dollars) in the country's biggest share offering ever and a world record for an IPO (Initial Public Stock Offering) this year.

The flotation, in both São Paulo and New York, was the biggest in the world since Visa's offering in March 2008.

Santander will use some of the proceeds to expand its branch network and install automatic teller machines. It will also boost its capital reserves.

Santander is the third largest private-sector bank in Brazil by assets. It has a market share of about 10%, with just over 3,600 branches across the country, having expanded through six domestic takeovers over the past 12 years.

The unit is one of Santander's most profitable businesses – making up about 20% of its total net income in the first half of 2009.

The bank had increased the number of shares it put up for sale, to meet demand from investors.

The previous largest initial public offering (IPO) in Brazil was that of credit card processor VisaNet in June.

The high level of demand for the offer was seen as an indication that considerable interest had returned to the IPO market, according to analysts.

On Wednesday, Banco Santander shares closed at 22.62 Brazilian reais (US $12.94), lower than the initial price of 23.50 reais. Stocks traded on the New York Stock Exchange fell 3% from US$ 13.42 to US$ 13.01. 

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Expats Send US$ 6.4 Bi Home, Same as Soybean Exports

The Inter-American Development Bank (IADB) wants to encourage people who receive money from relatives ...

Arab Word Under the Spell of Brazil’s Soap Operas

Soap opera “Cordel Encantado” (Enchanted Chapbook) was not only successful in Brazil. Broadcast by ...

Hugo Chavez Finds Out He Has Few Friends in Brazil’s Senate

Brazilian senators postponed on Wednesday until next Tuesday the vote on Venezuela's incorporation to ...

English for Brazucas Tea, Cocoa, and Chocolate

Aiming at "simplifying," and to mark the difference, the English added nut to coco, ...

Brazil’s Industry Lauds Tax Exemption for Foreign Investor

The president of the National Industrial Confederation (CNI), Armando Monteiro Neto, declared that he ...

US Broadband System to Be Used in Brazil’s Education Project

Atlanta-based Wave7 Optics Inc., a world supplier of point-to-multipoint Ethernet FTTP (fiber-to-the-premises) systems for ...

Brazilians Insulted That Coming Rousseff’s Trip to White House Is Not State Visit

Although relations between Brazil and the United States are supposed to be excellent when ...

Brazil’s Vivo Teams Up With ReCellular to Save Cell Phones from Trash

US-based ReCellular, an international collector, reseller and recycler of used wireless cell phones and ...

Russian Team in Brazil on a 9-State Meat Inspection Mission

The group of Russian veterinarians who spent the last two weeks inspecting 17 slaughterhouses, ...

Brazil’s Lula Inaugurates Mercosur Parliament and Declares FTAA Dead

Despite constant trade disputes Mercosur this Thursday found respite and motive to celebrate with ...