SAO PAULO (Dow Jones)--Brazilian credit-card networking services providerRedecard SA (RDCD3.BR) and its controlling shareholders raised 4.64 billionBrazilian reals ( $2.44 billion) from its initial public offering, more than the BRL4.07 billion previously announced, the company said Monday in a statement.
Redecard, jointly controlled by local banks Banco Itau (ITU), Unibanco (UBB),and U.S.-based Citigroup Inc. (C), said the initial value of the IPO increasedafter it offered an extra lot of shares due to the strong demand.
Foreign investors acquired 71% of the shares. The company sold 171.9 millionshares, with foreign investors acquiring 123 million shares. Redecard said itsold 15.55 million shares through a primary offering and 156.39 million sharesvia a secondary offer.
The shares that were sold under the secondary offer are held by Itau, Unibanco and Citibank .
The shares were sold in Brazil and to investors in the U.S. in the form ofGlobal Depositary Receipts, or GDRs. Each GDR will be represented by two commonshares.
The shares were priced at BRL27.00 per share. On Friday, the shares werequoted at BRL30.50 on the Brazilian Stock Exchange, the Bovespa.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-3145-1480; rogerio.jelmayer@dowjones.com
(END) Dow Jones Newswires 08-06-07 0623ET Copyright (c) 2007 Dow Jones & Company, Inc.
