By Brazil Stock Guide – Brazilian drugstore retailer Pague Menos (PGMN3.SA) raised BRL 243.5 million ($43 million) in a follow-on share offering. The primary tranche totaled BRL 140 million ($24.7 million) through the issuance of new shares, while the secondary sale, involving shares held by private equity firm General Atlantic, amounted to BRL 103.5 million ($18.3 million). Shares were priced at BRL 3.50 each.
According to Valor Econômico, the transaction could have been expanded by up to 14.4%, but the company chose not to exercise this option. Pague Menos said proceeds from the primary tranche will be used to reinforce its working capital.
Other Brazilian companies have also tapped equity markets this year. Waste management firm Orizon (ORVR3.SA), auto parts maker Fras-Le (FRAS3.SA) and Caixa Seguridade (CXSE3.SA) all conducted secondary offerings in 2025 as they sought to strengthen their balance sheets.
(Exchange rate used: approx. BRL 5.65 per USD)