BTG Said to Attract More Than $6.6 Billion in IPO

Banco BTG Pactual SA (BBTG11), the Brazilian bank led by billionaire Andre Esteves, attracted more than $6.6 billion in orders for its initial public offering, three times its goal, a person familiar with the deal said.

The price of the units sold will probably be at the top of the proposed range, or 33.75 reais apiece, said the person, who asked to remain anonymous because the transaction is still being marketed. That would value the bank at 29.4 billion reais or about 3.5 times its book value.

The bank told investors that it plans to close orders on April 23, earlier than a prior deadline of noon April 24, so it can have more time to do a better allocation, the person said.

BTG said it needs orders of 4.1 billion reais ($2.2 billion). It had said in a regulatory filing that it may sell as many as 121.5 million units that represent voting and non-voting shares priced at 28.75 reais to 33.75 reais each. BTG is selling as much as 14 percent of its capital including the overallotment. Actual shareholders can sell up to 2.8 percent of their holdings.

The units are scheduled to be priced April 24 and start trading in Sao Paulo and Amsterdam two days later. The bank plans to use proceeds to “continue expanding its businesses” and to improve its “funding structure,” according to the prospectus.

A BTG official declined to comment, citing a “silent period” before the IPO.

Banco Bradesco SA, Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc., Banco do Brasil SA, UBS AG, Deutsche Bank AG and Morgan Stanley are managing the offering.

To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net.

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.

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