Alupar Sinks in Sao Paulo After Pricing IPO at Low End of Target
Alupar Investimento SA (ALUP11) tumbled in its Sao Paulo trading debut after the Brazilian electricity and transmission company priced shares in an initial public offering at the low end of its target range.
The shares sank 2.9 percent to 17.96 reais at 11:48 a.m. in Sao Paulo from the 18.50 reais offering price after dropping 4.5 percent. The Ibovespa stock benchmark gained 1.2 percent while the Bovespa Electric Energy Index was little changed.
Alupar had estimated that shares would price within 18.50 reais to 21.50 reais, according to a prospectus. The Sao Paulo- based company’s IPO was the fourth in Brazil this year.
Software developer Senior Solution SA has dropped 1.7 percent since it started trading in March. Biosev SA (BSEV3), Louis Dreyfus Holding BV’s Brazil unit, tumbled 13 percent since its debut on April 19. Technology company Linx SA is up 15 percent since it started trading in February.
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