Biggest homebuilder raises millions in property share sale
A Brazilian property giant has become the fourth real-estate company to sell shares this month, raising over £365 million in the process.
Cyrela Brazil Realty SA Empreendimentos e Participacoes, the South American country’s biggest homebuilder, is currently selling as many as 47.3 million voting shares at 22 reais (£7.75) each.
The offering was priced below the firm’s average in the last month of trading in Sao Paolo but may be increased with a supplementary offer of 6.45 million shares, according to a statement sent to Brazil’s securities regulator.
Eduardo Silveira, an analyst at Fator Corretora in Sao Paolo, said: "Despite the positive outlook for the construction industry, share offers in the pipeline should pressure stocks in the short term."
Cyrela, which is controlled by Brazilian real estate magnate Elie Horn, plans to use 35 per cent of the share sale proceeds to buy land for low-income housing developments, with another 35 per cent targeted for upscale projects.
