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April 13, 2011/PRNewswire/ --
GERDAU S.A. (Bovespa: GGBR, NYSE: GGB, Latibex: XGGB) (the "Company") announced today that it has priced its global offering of 68,026,910 common and 203,830,100 preferred shares (not including any exercise of the underwriters' over-allotment option), including preferred shares in the form of American depositary shares ("ADSs"). The common shares are being offered to the public in
Brazil at a price
R$15.60 per share, and the preferred shares are being offered to the public in
Brazil at a price of
R$19.25 per share. Common shares are being offered in
the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside
the United States pursuant to Regulation S under the Securities Act at a price of
R$15.60 per share. Preferred shares in the form of ADSs are being offered to the public internationally at a price of
US$12.13 per preferred ADS. The aggregate proceeds to the Company, after underwriting discounts and commissions, will be equivalent to approximately
The global offering consists of a registered offering in
Brazil and an international offering, which includes a registered offering of preferred shares in the United States. Investors in the international offering of preferred shares may elect to receive their shares in the form of ADSs. The global offering is scheduled to close on
Monday, April 18, 2011, subject to satisfaction of customary conditions. Further information about the offers is contained in the offering documents.
Existing shareholders of the Company that are resident in
Brazil were given the right to subscribe for shares in the Brazilian offering on a priority basis. Our principal shareholder, Metalurgica Gerdau S.A., subscribed the number of common shares required to maintain its proportionate interest in our common shares following our capital increase, and increased its interest slightly.
The preferred ADSs are listed on The New York Stock Exchange under the symbol GGB. Our common shares and preferred shares are listed on the Sao Paulo Stock Exchange under the symbols GGBR3 and GGBR4, respectively. Our preferred shares also trade on the LATIBEX, under the symbol XGGB.