BB Seguridade Participacoes SA (BBSE3), Banco do Brasil SA (BBAS3)’s insurance unit, declined in its first day of trading after raising 8.5 billion reais ($4.2 billion) in the world’s biggest initial public offering this year.
The shares sank as much as 5.3 percent to 16.10 reais from the IPO price of 17 reais. They traded at 16.71 reais at 2:03 p.m. in Sao Paulo. The Ibovespa stock benchmark rose 0.9 percent. Banco do Brasil declined as much as 2.1 percent to 24.65 reais, its lowest intraday level since Feb. 20.
BB Seguridade sold shares during the busiest month for Brazilian IPOs since 2007 even as the country’s main equity index is posting the worst decline among major emerging markets this year. Four companies raised 11 billion reais in April, excluding the so-called greenshoe option for underwriters to buy additional shares. The Ibovespa has dropped 10 percent in 2013.
The 17 real IPO price was within the 15 reais to 18 reais range that the insurer set in its prospectus.
Brazilian airline Gol Linhas Aereas Inteligentes SA (GOL:US)’s mileage unit, Smiles SA, also made its trading debut in Sao Paulo today after its IPO. The shares rose 11 percent to 24 reais.
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