PDG Realty SA Empreendimentos e Participacoes, Brazil’s biggest homebuilder, rose to a one-week high after shareholders approved an 800 million-real ($392.6 million) capital injection to bolster its finances.
Shares gained 4.4 percent to 3.35 reais at the close in Sao Paulo, the highest since July 6. The BM&FBovespa Real Estate Index rose 0.1 percent.
PDG’s shareholders approved the capitalization from the investment fund Vinci Partners Investimentos Ltda. at a meeting yesterday, according to a regulatory filing. Earlier this week, PDG cut its new-project target for 2012 to a range of 4 billion reais to 5 billion reais, from 8 billion reais to 9 billion reais, citing a slowdown in demand.
“The capitalization, coupled with the material reduction in 2012 launches guidance, seem to be important moves toward a more comfortable financial position,” Alexandre Amson, an analyst at Banco Santander Brasil SA, said in a note to clients dated today. “The capitalization optimizes PDG’s capital structure, reducing net debt-to-equity from approximately 80 percent to approximately 60 percent.”
PDG has retreated 43 percent this year while the Bovespa stock index slid 4.3 percent.