Banco do Brasil’s BB Seguridade IPO last month raised R$11.48 billion ($5.7 billion), making it the largest IPO in Latin America since Santander’s IPO of its Brazilian bank in October 2009. It was also another high-water mark for the local banks in the continuation of their dominance of Brazilian equity mandates. Including the joint bookrunners (Brasil Plural and Banco Votorantim) six of the eight banks were locals, with only Citi and JPMorgan winning roles alongside Banco do Brasil, BTG Pactual, Bradesco BBI and Itaú BBA.

The deal is the first IPO mandate for Brasil Plural and marks the emergence of yet another local securities platform that will present the foreign banks in Brazil with added competition in an already crowded market. Brasil Plural’s management team almost exclusively comprises old Pactual partners  that left the bank when Andre Esteves bought the business from UBS to create BTG Pactual. Seven of the nine members of the board are ex-Pactual. They were prevented by a noncompete clause from entering the securities business until July 2011 and so focused on advisory. Since then, however, Plural has been growing quickly: it bought a banking licence and in August 2012 finalized the acquisition of one of Brazil’s leading brokerage firms, Flow. The bank now has more than 300 employees, based mainly in São Paulo and Rio do Janeiro, but it also has a distribution office in New York, which was involved in marketing the BB Seguridade transaction.

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