OHL Set for FO

OHL Mexico is scheduled to price today an equity follow-on targeting more than $500m. The transaction was heard to be still on track as of late Wednesday afternoon, with books nearly covered. A successful pricing would encourage the markets following Tuesday’s pulling of the $3.7bn Votorantim Cimentos IPO. The Mexican unit of Spanish concession and infrastructure specialist OHL is selling 241.2m primary shares, if a 15% greenshoe is included, suggesting a MXP7.48bn ($567m) deal if done at Wednesday’s MXP31.03 closing price. The shares fell 7.1% in Wednesday’s session. The transaction should represent about 13.9% of the unit and result in a 36% free-float. The issuer plans to use about half of the proceeds to make investments in projects and half to repay debt. BBVA and UBS are global coordinators, joined by Goldman Sachs and JPMorgan on the international portion and Santander on the local side. The issuer raised $900m-equivalent in a 2010 IPO.