Reuters: Private Equity: Brazil's Qualicorp raises $412.2 mln via new share issue

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Brazil's Qualicorp raises $412.2 mln via new share issue Apr 18th 2012, 02:28 SAO PAULO, April 17 | Tue Apr 17, 2012 10:28pm EDT SAO PAULO, April 17 (Reuters) - Health services provider Qualicorp on Tuesday raised 758.5 million reais ($412.2 million) through an issue of new stock, in the first secondary share sale this year for a Brazilian stock market struggling to generate appetite for new offerings. The sale, which the company had decided to scale back earlier in the year, set a value of 16.50 reais for the 46 million new shares sold. U.S. buyout firm Carlyle Group is one of Qualicorp's controlling shareholders. The price set for the stock reflects a 1.3 percent discount compared with the company's closing share price of 16.71 reais on Tuesday. The scaled-back offering, which the company had originally hoped would raise as much as 991 million reais when first announced earlier this year, reflects still-tepid interest from investors in new share sales in Brazil. After a spate of gangbuster public offerings amid Brazil's steady economic growth over much of the past decade, investor appetite has been waning for more than a year. Not only did soaring stock market valuations lead many to fear an equities bubble had formed, but also investors began to shy away from emerging markets because of the European debt crisis and the unclear economic outlook worldwide. On Wednesday, car rental company Locamerica is expected to set the price for its initial public offering. The deal, the first IPO in Brazil in 2012, will further gauge whether investors are ready to finance newcomers and breathe life back into the market for new shares. Link this Share this Digg this Email Reprints

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