Senior Solution SA, a Brazilian software developer for the financial industry, declined on its first day of trading after pricing the stock below its expected range.
Shares that priced at 11.50 reais in an initial public offering dropped 10 percent to 10.40 reais at 2:12 p.m. in Sao Paulo. They earlier fell as much as 17 percent. The benchmark Bovespa index slid 0.7 percent.
The company and its underwriters had estimated that the shares would price within a range of 13.50 reais to 15.50 reais, according to a February prospectus. Senior Solution said this week in a statement that it is raising as much as 62.2 million reais ($31.9 million) in the offering.
A Senior Solution press officer declined to comment.
Brazil’s last IPO was Feb. 6, when Linx SA, a communications technology provider, raised 527.9 million reais in primary and secondary offerings. The company sold shares at 27 reais, the high end of its projected range.
Three Brazilian companies had IPOs in 2012, the fewest in nine years, with two pricing shares below their targets.
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