A view of Pearl Qatar at Dusk (Steven Byles from Singapore, Wikimedia Commons, CC BY-SA 2.0)
Qatar Investment Authority has sold about 2.5 percent of Banco Santander Brasil SA for 2.3 billion reais ($737m) in a restricted offering after banks exercised an option to buy extra units, the bank said yesterday.
Investors paid 25 reais each for the 80 million units initially offered - a blend of Santander Brasil’s common and preferred shares - as well as for the extra allotment of 12 million units, the bank said in a statement to the Brazilian market regulator.
QIA and banks underwriting the deal had suggested a price of 27 reais per unit, three people with direct knowledge of the deal said, but investors baulked at the price and pushed for a lower level.
The units shed as much as 5.2 percent on Wednesday on news of the investor pushback, falling to 26.13 reais, the lowest since late December. The stock has shed 15 percent since March 27, the day before the offering was announced.
Investors placed bids worth 2.5 times to three times the amount of units in Brazil’s fourth biggest bank on offer, the sources said.
