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:

Ads

You May Also Like

Brazil’s Ruling Party Diverted US$ 4.5 Million from Bank of Brazil and Lula Is in Danger

Brazilian opposition leaders announced that President Luiz Inácio Lula da Silva will be included ...

Brazil/Mercosur and EU Discuss Trade Liberalization

The 9th Meeting of the Mercosur-European Union Commission began this Wednesday, April 13, in ...

Peru’s President Elect Travels to Brazil Aboard Brazil’s Air Force One

Peruvian elected president Alan Garcia is scheduled to travel Tuesday to Brazil invited by ...

Elections keep the status quo

Brazilians are going to the polls for the runoff election November 15. But for ...

60,000 Strong Palestinian Community in Brazil Holds National Meet

The Palestinian community living in Brazil is going to have a national meeting in ...

Brazil Raises Key Rate by 0.5% to 12.25% to Curb Inflation

The Brazilian Central bank raised its benchmark interest rate this week for the second ...

Mercosur Asks in Brazil: Where’s the Money for Haiti?

A joint communiqué from the Mercosur summit, which took place on Friday in Ouro ...

Brazilian Pantanal Uses Bone and Horn, All to Sell Furniture

Nature in the Brazilian Pantanal is generous. There are savannahs, a little Amazon forest ...

Vatican Confirms: Pope Will Visit Brazil in May

Pope Benedict XVI will visit Brazil in May 2007. The news was confirmed by  ...

Why Are Oil-Covered Penguins Washing Up Dead on Brazilian Beaches?

Oil-slicked penguins, possibly thousands of them, washed up dead on the beaches of a ...