OHL Slides at Mexico Debut

Shares of OHL Concesiones Mexico traded down in their first session following an MXP11.20bn IPO, which came at the low end of the targeted range. The Mexican concession unit of the Spanish builder priced 447.8m shares, including a greenshoe, at MXP25.0, just inside the MXP24.0-MXP30.0 range. The stock then closed down 4.0% at MXP24.0 Thursday, while the Bolsa fell 0.3% on the day. “It is not so important that it came at the lower end, as we are talking about assets with years of income generation,” Pablo Ortiz, equity analyst at Interdin Bolsa in Madrid, tells LatinFinance. OHL’s Mexican road assets feature a guaranteed minimum income, unlike some concession contracts. “This transaction will open the market for new listings,” Luis Tellez, president of Mexico’s Bolsa, tells reporters in New York Thursday. BBVA and Santander managed the Mexican portion, with Credit Suisse, Santander and UBS handling the international side. Proceeds will fund investment in Mexico, OHL says. The deal leaves the company with a 70% stake in the unit. It is building, and wholly owns, the Bicentenario Mexico City toll road, Libramiento Norte de Puebla road, and latter phases of the Circuito Exterior Mexiquense road. It also operates the Circuito Exterior Mexiquense Phase I road, Carretera Amozoc-Perote road and Toluca International Airport, of which it owns 87%, 55% and 33%, respectively.