Brazilian companies undertaking IPOs are reducing their number of bookrunners because several recent deals have been badly executed and overpriced, say experts.
During the recent international financial crisis, many companies borrowed large sums from commercial banks in Brazil to ride out the storm but, as part of the terms of the loans, the banks insisted on being underwriters if the companies went public. This arrangement has proved to be unwieldy and would-be issuers have realized they must reduce the number of bookrunners.
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from 15 deals so far this year. |
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