Subscribe RSSPosted by: Effect Scott on October 07
Asian companies are are rushing to tap seemingly insatiable investor appetite through a recent blitz of IPOs in Shanghai, Hong Kong, and other regional capitals. Not to be outdone, Spain’s Banco Santander — the largest bank in the 16-native land euro area — is also getting in on the emerging economy act. On Oct. 6, the Madrid-based giant said it raised $8 billion by floating its Brazil subsidiary in New York and Sao Paolo in the largest IPO so far this year.
To put that into environment, the deal outshines the $4.3 billion float of Brazil’s Visanet early this year, which itself had been a popular record. The cash raising also outmatched a spate of Chinese IPOs (predominantly in the construction and infrastructure sectors) that have raised over $20 billion combined this year alone, according to statistics provider Dealogic.
According to Santander, the extra capital will be used to expand its Brazilian presence — it’s currently the hinterlands’s third-largest bank by assets. It also will shore up Santander’s capital ratio, a key indicator of fiscal strength. This appears another savvy move by Santander’s canny chairman, Emilio Botin.
