(Reuters) April 11, 2011 – Brazil’s Time for Fun, the world’s fourth-biggest entertainment company, and shareholders raised 539M reais ($341M) in an initial public offering, Brazil’s securities regulator CVM said on Monday.
The Sao Paulo-based company, which organizes live events mainly in Brazil, Argentina and Chile, sold 11.7 million new shares for 16 reais each, while existing shareholders including Gavea Investimentos sold 22 million shares for the same price.
That price was within the range of 14.5 reais and 18.5 reais that the company and bankers had proposed to investors in March. Time for Fun, also known as T4F, had said it hoped to fetch up to 624 million reais.
The shares are slated to begin trading under the symbol “SHOW3” on the BM&FBovespa exchange starting on Wednesday.
T4F’s IPO comes as rising income and the strongest job market in four decades spur demand for live events in Brazil. The group recently organized shows for pop icons U2 and hard rock legend Ozzy Osbourne.
Credit Suisse Group (CSGN.VX) will manage the offering, alongside Brazilian securities firm BTG Pactual [BTG.UL] and the investment banking unit of Banco Bradesco (BBDC4.SA).
Five companies currently have plans to sell shares in Brazil in the coming months, seeking to take advantage of the country’s strong capital markets.
But growing risk aversion has led to the cancellation and delay of IPOs in recent months, and investors are starting to eye offerings in Mexico and Colombia where valuations are cheaper.
Reporting by Cesar Bianconi, Writing by Brian Ellsworth