Vesta Trims Follow-On

Corporacion Inmobiliaria Vesta’s follow-on equity sale raised MXP2.49bn ($189m) Tuesday, less than planned after one secondary seller opted out. Investors bought close to 98m primary shares and 12.8m secondary shares at MXP22.5, a 4.9% discount to Vesta’s MXP23.67 closing price. The sale of secondary shares was smaller than the 44.5m initially planned, after the real estate investment arm of German savings bank Deka decided not to sell its stake. The rest of the secondary portion came from DEG, a private sector financing arm of German development bank KfW, which went ahead with its sale. Investors submitted orders for around twice the 110.7m shares that were sold. The follow-on was priced above the MXP19 where Vesta sold its $250m-equivalent IPO in July last year, but below the MXP25.49 where the stock was trading when Vesta announced the follow-on last month. Credit Suisse and Santander managed the transaction.