BRASILIA, June 2 (Reuters) - Insurance broker FPC Par Corretora de Seguros SA marked Brazil’s first initial public offering in seven months on Tuesday, with the offering pricing well above the original price range at 12.33 reais ($3.94) per share.
The offering of 48,888,890 shares was worth 602.8 million reais, the website of Brazil’s securities regulator CVM said.
The IPO was only a secondary share offering, in which existing shareholders fully or partially cashed in their shares. The company will not realize any proceeds from the offering.
Managers of the IPO had originally set a price range of between 11.25 to 11.60 reais a share.
The appetite for the Par Corretora shares came as a surprise given the uncertainty clouding the Brazilian economy, which is heading into its worst recession in 25 years.
Shares in financial services companies, however, have outperformed other stocks on the Sao Paulo stock exchange, with investors seeing them as better prepared to ride the economic downturn.
With no shortage of demand for property, health and life insurance companies like Par Corretora are seen to have guaranteed cash flows despite the slowdown.
$1 = 3.1300 Brazilian reais Reporting by Anthony Boadle; Editing by Leslie Adler