Mexican Specialist Lender Set for IPO

Mexico’s Credito Real is scheduled to price an IPO today, targeting around $200m. The sale should test appetite for smaller-cap issuers, seen by many to play a role in Mexico’s forecasted expansion in ECM issuance along with larger trades from the likes of Santander Mexico and Mexichem. The specialist in payroll, group microbusiness and durable goods loans would raise MXP2.43bn ($190m) if the 101m shares priced at the midpoint of the MXP22.00-MXP26.00 range. A 15% greenshoe is also possible. About 73% of the deal is planned to be primary shares, with the remainder secondary shares to be sold by investors including Nexxus Capital – the largest holder with 18.3% – and Grupo Kon. The bank was aiming to place half the deal in Mexico and half internationally. Proceeds are for general corporate purposes and for expansion plans. Deutsche Bank and Barclays are managing the international portion, joined by Banorte-Ixe on the domestic tranche.