Banco Macro Bansud, one of the largest banks in Argentina, received a warm welcome with its recent listing on the New York Stock Exchange. The bank raised $217 million in total proceeds from an offering of American depositary receipts. In their debut on the NYSE on March 24, the ADRs rose about 15% from their offering price.
Initial public offerings from Latin American companies that listed on the New York Stock Exchange raised $2.5 billion in total proceeds in the first quarter of 2006. Banco Macro Bansud became the 11th Argentina-based company to be listed on the exchange.
Each Banco Macro Bansud ADR represents 10 class B shares, which are traded on the Buenos Aires Stock Exchange. The bank also offered 9.5 million class B shares in a simultaneous offering in Argentina. UBS Investment Bank and Raymond James were the joint lead managers for the global offering.
Banco Macro Bansud operates one of the most extensive banking networks in Argentina. It provides a range of basic banking services to low- and middle-income individuals, and small- and medium-size businesses that are located mainly outside of the Buenos Aires metropolitan area. The bank has the most extensive private-sector branch network nationwide. The Bank of New York is the depositary for the ADR program.
Banco Hipotecario, Argentina’s largest mortgage bank, started a Level I ADR program, also with The Bank of New York as depositary. The ADRs are traded in the over-the-counter market in the US. The Argentine government owns a 54% non-controlling stake in Banco Hipotecario, which it established in 1866.