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Santander Brazil, Verisk Raise $10b IPO

Banco Santander (Brasil) SA raised $8.05 billion after selling 600 million units for 23.5 reais each whereas Verisk raised $1.88 billion

The IPOs by the Brazilian unit of Spanish bank, Banco Santander and US insurance data provider, Verisk Analytics raised approximately $10 billion – reported Reuters.

Banco Santander (Brasil) SA raised $8.05 billion after selling 600 million units for 23.5 reais each, within the estimated range. The bank had filed to sell 525 million units, with each unit representing 55 common shares and 50 preferred shares, but the offering was increased by 75 million units to meet demand from investors.

The company intends to use 70% of the net proceeds from the offering to expand its physical infrastructure, including opening new branches and installing additional ATMs, and to fund increased credit transactions in its Commercial Banking and Global Wholesale Banking segments more efficiently. Around 20% of the net proceeds will be used to improve its funding structure and the rest 10% will be used to increase its capital base, improving the Basel capital adequacy ratio, reported RTTNews.

Verisk raised $1.88 billion in its IPO, succeeding pricing shares at a higher-than-expected $22 each in the new offering by a US company. Verisk, that operates through its subsidiary, ISO, collects actuarial and underwriting data related to US property and casualty insurance risks.

All 85.25 million shares in the IPO were being sold by Verisk’s existing shareholders, which include American International Group, Hartford Financial Services Group and ACE Group Holdings. Warren Buffett’s Berkshire Hathaway did not sell its stake in the company.

The Verisk and Santander Brasil IPOs bring to three the number of $1 billion IPOs in the US in the past two weeks alone, along with Chinese video games maker, Shanda Games, reported the news agency.