July 21, 2017 / 9:57 PM / a year ago

UPDATE 1-Biotoscana Brazil IPO raises $417 mln, at midpoint of price range

(Adds pricing, amount raised)

By Guillermo Parra-Bernal and Bruno Federowski

BOGOTA/SAO PAULO, July 21 (Reuters) - Grupo Biotoscana SA and shareholders on Friday raised 1.34 billion reais ($427 million) with an initial public offering in Brazil at the midpoint of a suggested price range, capping the busiest week in four years for equity offerings in the country.

Biotoscana, a Colombia-based pharmaceutical company, sold 50.6 million Brazilian depositary receipts (BDRs) at 26.50 reais each, data from securities regulator CVM showed.

The transaction underscores the solid demand for a rare regional play in the biotechnological sector. Reuters had reported on Friday afternoon that investors had placed bids worth nearly five times the amount of shares on sale, at the midpoint of the suggested price range of 24.50 to 28.50 reais.

It also spells good news for reinsure IRB Brasil Resseguros SA and renewable power firm Omega Geração SA, which are scheduled to list shares on the São Paulo Stock Exchange in coming weeks.

Grupo Carrefour Brasil SA and shareholders on Tuesday placed 5.12 billion reais ($1.6 billion) worth of shares in Brazil’s largest initial public offering in four years, though the offering priced at the bottom end of a suggested range.

Investors have been wary of Brazilian IPOs because new issues have failed to deliver promised returns over the past decade. Less than one-third of the 115 IPOs priced since the start of 2007 yielded returns above Brazil’s interbank lending rate, according to Thomson Reuters data. ($1 = 3.1406 reais) (Reporting by Guillermo Parra-Bernal and Bruno Federowski; Writing by Bruno Federowski; Editing by Jonathan Oatis)

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