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Marfrig stock falls 10%

Marfrig's new issue of ordinary shares began trading on the BM&FBovespa market at a significantly reduced price. At around 11.05 AM they had lost 10.05%, quoted at R$ 8.14. The Ibovespa index climbed 0.41%, to 57,800 points. In the week, the stock had lost about 20% of its value, down by 15.6% in trading yesterday alone, to R$ 9.05.

To complete its share issue, the company had to give a big discount on the share price, which came out at R$ 8 - half of what it was worth at its IPO, in June 2007, and the lowest price this year. The company has thus secured R$ 840 million, well below the R$ 1.16 billion estimated for the operation. The figure relates to the initial batch of 105 million shares. At Brazil's securities commission (CVM), Marfrig has registered 131.25 million shares, encompassing the whole additional issue, of 20%, plus a small part of the supplementary lot, which could reach 15%. These two extra lots could be sold over the next month by the coordinating banks.

Information provided by Valor Econômico

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