Text size [+][-] Saturday November 21 2009GLOBAL EDITION
Home > VisaNet IPO
By Aliza Rosenbaum
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On June 25, VisaNet completed its $3.66bn IPO by selling shares at the top of its range at 15 reals.Brazil’s local Visa payment processing affiliate VisaNet, known officially as Companhia Brasileira de Meios de Pagamento, is planning to sell 477m shares at a range of 12-15 reai. Including supplemental shares and the bookrunners’ over-allotment, the offering could reach 644m shares, according to Dealogic. The shares were originally expected to price on June 25 and begin trading on June 29. However, on June 24, VisaNet announced that it was banning 19 brokerages from participating in the offering, claiming that these firms published advertisements about the sale without approval from Brazil’s securities regulator. That may delay the deal slightly.Bookrunners are Banco Bradesco, Banco do Brasil , Banco Santander, JPMorgan, Goldman Sachs and UBS. Banco Bradesco owns 39% of VisaNet, Banco do Brasil 31%; Santander 14% and Visa 10%. Brazil’s GDP is expected to shrink 1.5% in 2009, and grow 2.7% in 2010, according The Economist. Current three-month interest rates are 9.2% and May prices rose 5.2%. The country’s budget deficit represents 2% of GDP.
aliza.rosenbaum@breakingviews.com