ICA Reopens Mexico Equity Market

Mexican developer ICA has raised MXP2.26bn by pricing 113m shares at MXP20.00, a 4.7% discount to Thursday’s close. Underwriters can place an additional 37m shares, which would bring total proceeds to MXP3.00bn. The discount is not small, but executives close to the trade say the company opted to price at a slightly lower level than the maximum price in the book to give investors a lift. This is ICA’s third visit to the equity markets in 4 years. The deal, which reopens the long-dormant Mexican market, was heard well oversubscribed, though further details on the book were not available late Thursday. At an FX conversion rate of MXP13.57, the implied ADR price is $5.90, where 4 ICA shares equal 1 ADR. The deal was placed 30% with locals and the rest internationally. Merrill Lynch is global coordinator, with Santander with joint books, and Citi and junior bookrunner. ICA paid its underwriters a 2.5% fee, according to a person close to the transaction.