Feb. 23 (Bloomberg) -- Lupatech SA, a Brazilian provider of oil equipment and services, surged to the highest in more than three months after its board approved a 15 million-real ($8.8 million) loan from Banco Itau BBA SA.
Lupatech gained 4 percent to 6.69 reais in Sao Paulo at 1:50 p.m. Earlier the stock jumped as much as 5.3 percent to 6.77, the highest since Nov. 18.
The rise follows an 8.6 percent gain yesterday after Lupatech said an agreement to sell 700 million reais worth of shares to investors in a private placement, which it originally announced in December, will occur in about three weeks. The Caxias do Sul, Brazil-based company is selling assets to meet debt payments after posting losses every quarter since the beginning of 2010.
The two-month Itau loan matures on April 17, Lupatech said in a regulatory filing today.
Lupatech, which provides ropes and valves for oil production, is expanding its business to exploration. It agreed to buy oil driller San Antonio in December.
The stock has gained 51 percent this year, compared with a 16 percent rise in the benchmark Bovespa index.
--With assistance from Peter Millard in Rio de Janeiro. Editors: Carlos Caminada, Dale Crofts
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