Vesta IPO Waits a Day

Mexico’s Corporacion Inmobiliaria Vesta is now set to price its IPO today, pushed back one day from Wednesday at the request of regulators, according to sources following the deal. The industrial real estate specialist’s sale targeting about MXP4bn ($304m) was heard already oversubscribed as of Wednesday afternoon. “This is in many ways a bond proxy, when you have contracts and high occupancy, and strong income,” says an EM investor looking at the deal. He notes that Vesta’s portfolio stands out due to many blue-chip tenants, such as BMW. The deal is also helped by the more bullish view that has taken shape this year regarding Mexico’s growth prospects, particularly regarding the increased investment from the types of manufacturers that use Vesta’s facilities. Vesta is offering 177.2m shares at MXP19.00-MXP21.00 each, meaning a MXP4.08bn sale if priced at the midpoint and a 15% greenshoe is used. The base deal includes 50.7m primary shares to sold in Mexico, 88.6m primary shares to be sold internationally, and 37.9m secondary shares to be sold in Mexico by members of the founding Corona family and other investors. Vesta plans to use 75% of the proceeds for the construction of new projects and the remainder for acquisitions. Credit Suisse and Santander are managing. The developer is in 11 Mexican states and specializes in light manufacturing and distribution facilities.