Ser Educacional Falls in Debut After Pricing Shares Below Range
Ser Educacional SA (SEER3), the owner of 23 post-secondary schools in Brazil, fell on its first trading day after selling shares below its intended range.
The shares dropped 1.7 percent to 17.21 reais at 3:12 p.m. in Sao Paulo. The benchmark Ibovespa gauge fell 1.4 percent.
The company priced shares at 17.50 reais in its initial public offering, below the range of 19.50 reais to 23.50 reais it estimated in a prospectus. The company and its shareholders are raising as much as 539 million reais ($247 million) by selling 15.4 million new and 15.4 million existing shares.
Ser Educacional’s offering was the second one by a Brazilian education company this month. Gaec Educacao SA raised as much as 468 million reais in an IPO on Oct. 24. Gaec has gained 2.9 percent to 19.03 reais from the initial price.
Brazil’s government is cutting interest rates and easing repayment terms on student loans as it seeks to swell the ranks of doctors, lawyers and engineers in Latin America’s largest economy, helping make Kroton Educacional SA (KROT3) the fifth-best performer on the Ibovespa this year and sparking a 22 percent rally this year in Estacio Participacoes SA. (ESTC3)
The Ibovespa entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 16 percent in dollar terms in 2013, compared with a decline of 1.9 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.
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