Brazilian sporting goods retailer Centauro priced its shares at 30 reais each in a follow-on offering aimed at raising 900 million reais ($175.84 million) to finance acquisitions, two sources with knowledge of the matter said.
Shares in Grupo SBF SA (CNTO3.SA), as Centauro is formally known, closed the trading day on Thursday trading at 31.50 reais, which implies investors in the share offering had a roughly 5% discount.
The company sold a total of 30,000,000 new shares, as it only sold its overallotments partially. The offering could reach up to 33,750,000 shares, according to a previous filing.
Centauro said it would use the extra cash to take advantage of unspecified acquisition opportunities opened up by the coronavirus-sparked recession.
The investment banking units of Banco BTG Pactual SA, Itau Unibanco Holding SA and Banco Santander Brasil SA managed the offering.
Centauro is the second company to conclude a share offering amid the outbreak of the novel coronavirus in Brazil, which sparked a market rout. While Brazil’s Bovespa index is still down 19% for the year, it’s surged by nearly a third since the end of March.
Parking lot operator Estapar ALPK3.SA listed its shares on Sao Paulo stock operator B3 SA (B3SA3.SA) in May.
Another Brazilian retailer, Via Varejo SA (VVAR3.SA), said on Wednesday that it planned to sell 4 billion reais in additional shares.