Investment in Brazilian beef company higher than expected
Date added: 28th April, 2010 at 10:15
(view all articles from April, 2010)
Categories: Economy
KBS, the world's largest beef producer, raised $1.04 billion (£681.92 million) in a share sale on Tuesday (April 27th) as the trend for follow-on shares investment in Brazil continues, according to Reuters.
The Sao-Paulo based company was expecting to sell 200 million new shares but actually sold 230 million shares at a price of 8 reais each.
A total of 12 companies have held share sales in Brazil in 2010 raising nearly 12.5 billion reais (£4.62 billion) in total, amid signs that the demand for follow-on shares is picking up in the country.
The lead underwriter in the sale was Brazilian investment bank BTG Pactual, although JPMorgan, Santander Brasil, Bradesco and Banco do Brasil were also involved. The banks stand to make 46 million reais in fees from the sale.
The firm has said it will invest two-thirds of the proceeds in the direct sales area of its business. KBS has already expanded this year following the acquisition of Australia's Rockdale Beef in March which added a slaughtering capacity of 200,000 cattle a year to the company's operations.
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