Sonda Set for FO

Chile’s Sonda closed books Tuesday and was due to release the price this morning for an equity follow on targeting more than $150m. The information technology firm is selling 53m shares, indicating a CLP77.96bn ($162m) deal at Tuesday’s CLP1,471 closing price. Sonda had been authorized to sell up to 100m shares. The IT company is raising funds for a regional expansion plan, about which analysts are generally optimistic. In a report recommending a buy at CLP1,420, Banco Penta highlights 9% return on investment in the last five years, a rate that the brokerage sees Sonda able to maintain going forward. Bice notes an attractive entry point, with shares trading at 2013 P/E of 17.1x and EV/Ebitda of 8.5x, below historical levels of 22.1x and 10.3x. The specialist in IT, applications and platforms is spending $700m on a 2012-2015 expansion plan. About $200m is to be organic, and $500m should come through acquisitions. Sonda is targeting growth outside Chile, specifically in Brazil, Mexico and Colombia. The company would use equity to fund about 40% of the plan, with 40% coming from cash and the remainder from debt. BTG Pactual and Goldman Sachs managed the sale, joined by Celfin on the local side. Sonda has been a consistent acquirer in the region, most recently taking Brazil’s Euclid for $73m in May and Chilean rival Quintec last year for $61m. It has a presence in Chile, Brazil, Argentina, Colombia, Costa Rica, Ecuador, Mexico and Uruguay.