Simpson Thacher & Bartlett is representing retailer C&A Modas, the Brazilian unit of Dutch fast-fashion retailer C&A, on a $408 million initial public offering, as Brazil enjoys a record string of equity offerings.

Grenfel Calheiros, head of Simpson Thacher's São Paulo office, said the resurgence of Brazilian equity offerings this year is the result of a confluence of factors. Brazilian interest rates are at a record-low 5%, leading Brazilians who are accustomed to collecting double-digit returns on their bank savings to pour money into the equity and bond markets in search of yield.

At the same time, the Brazilian economy is showing signs of recovery after five flat years, and overdue macroeconomic reforms appear to be on the horizon. This year, under market-friendly President Jair Bolsonaro, the Brazilian congress passed a landmark pension reform that promises to save some $200 billion in public spending during the next decade.

"The recent recession and related market volatility we had seen in Brazil led to pent-up demand on both the issuer and investor side, which is being fed by a new crop of Brazilian unicorns and seasoned companies re-tapping the market," Calheiros said. "For once, supply and demand seem to be aligned and, as a result, we are seeing more offerings and expect this trend to continue in the foreseeable future."

Calheiros was assisted on the C&A deal by Paulo Cardoso and Winnie Loureiro, from the Simpson Thacher capital markets group in São Paulo, and by tax lawyers Jonathan Cantor and Gal Shemer in New York.

C&A is one of the most recognised fashion retail brands in Brazil. It is focused on designing, distributing and selling clothing, accessories, shoes, swimwear, beauty items and perfumes at affordable prices for women, men and children through a nationwide network of brick-and-mortar stores and an online e-commerce platform.

The company, as well as shareholders COFRA Investments and INCAS, together sold 98.6 million shares on the São Paulo Stock Exchange, not including overallotments. The shares were offered to qualified institutional buyers under Rule 144A in the United States and to non-U.S. persons outside the United States in reliance upon Regulation S.

C&A Brazil's shares began trading Oct. 28.

This has been an active year for deals out of Brazil. Brazilian companies raised $17.1 billion via 34 transactions during the first nine months of 2019 – almost triple the amount of the year-earlier period, according to data from Reuters. This year's nine-month total for money raised through share offerings exceeds the full-year amount for every year since 2010.