(please click to enlarge)
Gafisa, GFA, is one of the darlings of the Brazilian stock market, having skyrocketed 198% since Jan 2009.
The table above shows the return of the Brazilian ADRS, taken from our live tracking of all latin-american ADRs site.
The company is working a new share offering that is being well received by analysts who follow the construction sector. They see in operation the a way for the company to reduce its leverage and ensure growth in a promising scenario for the Brazilian housing market.
The company expects to raise R$900M to $1.1B, USD $0.47B to USd$0.58B from its primary offering, which should be completed in the first quarter, said chief financial officer, Alceu Duilio Calciolari on a conference call with analysts on Tuesday.
35% of the funds will be used for the purchase of land, 25% for working capital, 20% for new projects, and 20% for partnerships and strategic acquisitions. "A stock offering will give us the opportunity to comfortably fund our business objectives in the coming years, while enhancing our current capital structure," said Gafisa's, Wilson Amaral. Last year, Gafisa expressed in June its desire to issue new shares to strengthen its cash up to R$700M. In July, however, the company withdrew its offer due to market conditions at the time. In December, the company announced the issuance of R$600M in debentures.
Several other builders eventually issued shares in 2009, including Cyrela Brazil Realty, Rossi Residencial and PDG Realty. That left Gafisa at a level lower than its competitors. Gafisa in December had net debt and obligations of investors with R$2B. "The leverage of the company is very high, and this can only be equalized if there is a capture like this," said analyst Christian Hees, Brascan brokerage firm. "There is a great need for new resources, and expectations for the sector are very good. Gafisa can no longer be left behind," Hees said.
According to Brava Investments, Gafisa chose to announce the offering of shares only after the quarterly earnings release and with already consolidated figures for the Tenda Construction acqusiition, so that the market had access to updated information. "The time (for a stock offering) is not the best, but the Bovespa at 64,000 points is at a good level," said a member of the staff analysis of Brava, referring to the recent turbulence in global equity markets.
The effective value per share in the provision of Gafisa will be fixed according to market conditions during the pricing. According to the chief financial officer of Gafisa, the targetted company releases of between R$4B to $5B in 2010 is feasible even if the stock offering is not successful. However, according to Brascan, the company already assumes that it will succeed in the stock offering.
Wednesday, February 10, 2010
Brazilian Gafisa's Public Offering Raising $0.5B
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2010
(1051)
-
▼
February
(62)
- Chile Earthquake
- Quest Uranium: Best Performer on the TSXV, +4,900%
- Profit From the Devaluation of the Yuan: China Con...
- Banco do Brasil Profit is Highest In History For A...
- Gold To Drop Until Early/Mid March
- Capital Is Fleeing Greece, Run on Banks
- China's Growth To Drop to 2%; Top ETF Performer is...
- Silver is Not Like Gold, Headed Lower or Sideways
- The Brazilian Building Boom Is Only Beginning, Sto...
- Why The NY Fed Prevented AIG Bailout Documents Fro...
- The U.S. Dollar is Erratic: Profiting From the USD...
- Top 10 Global ETF To Buy and To Sell: Brazil, Indo...
- Credit Markets Are Showing Serious Warnings Signs
- Exclusive Stiglitz: 2nd Stimulus Needed, Economy i...
- Euro Straddles: ROI +115%
- Fed Raises Rates Causing Oil To Drop: Profit From ...
- The Perfect Portfolio For Conservative Investors (...
- German Tax Payers Will Not Pay for The Mistakes of...
- The Carry-Trade at Full Steam: Using Yens to Inves...
- Euro FXE Update: ROI +40% In One Day - Currencies ...
- Profit From The Euro Going Up or Down
- Goldman Sachs Chief Global Analyst: Chinese Curren...
- The Top Leveraged ETFs In The Market To Buy and To...
- Roubini Says The Problems of Greece and the Euro A...
- Gold is Now in a Trading Range
- Roubini: Another Hard Landing Coming, Dollar Will ...
- Societe Generale: Euro Zone Headed For Break-Up
- Greece is not Alone, Japan and USA are Also Close ...
- Is Greece Tomorrow's Brazil?
- U.S. Banks Exposure To Weak European Countries: $176B
- Red Bull Formula One Car
- Greece: Straddles to Profit From the Collapse of t...
- Shocking U.S. Spending vs Revenue Chart
- Brazilian Gafisa's Public Offering Raising $0.5B
- Gartman: Commodities To Drop, European Union Set T...
- Report: Goldman Sachs Helped Greece Hide Deficit -...
- Stiglitz: The Prospects of Sound Recovery of The B...
- If the U.S Were a Corporation Its Credit Rating Wo...
- Profit From Trading Currency ETFs
- Teck Reports Today: Straddles to Profit Up or Down
- Top 30 Most Attractive ETFs to Buy and To Sell out...
- Chocolate Anyone? The Top Commodity ETFs to Buy, (...
- SPX Loses 34 Points, Previous Drops Over 30 Points...
- Markets Are Tanking: 1066 is the Level to Watch
- Roubini on Greece's Impending Default Crisis
- Having Fun With The Toyota Shameless Media Pounding
- Not Too Hot, Not Too Cold: UNG Straddles To Profit...
- Feasting on Toyota Straddles: Profit of +29.4%
- The Top 20 Stocks to Buy and To Sell Out of the To...
- Apple's Real Business Model: The Hype is Over, Now...
- Profiting From The Oil Cycles: Next Low in 1 to 3 ...
- St Louis Fed: U.S Has Escaped Japanese-Style Defla...
- Investing - and Properly Diversifying - in Foreig...
- The ETF Graveyard: Many ETFs Shutting Down, Lots M...
- Top 20 ETFs to Buy and To Sell For February - Out ...
- Roubini: We Are in Trouble, U.S. Growth is Dismal,...
- Properly Diversifying Stock, and ETF Holdings: Cor...
- The Volcker Rule: Banks Back to Basics, Stop Rippi...
- Australian Inflation Jumps: Rates Set To Rise Furt...
- Goldman Sacs (GS) CEO Could Receive $100M Bonus
- Switzerland Warns That UBS Could Collapse
- Where Gold is Headed, Indian Perspective
-
▼
February
(62)
No comments:
Post a Comment