Mexico’s BanBajio is planning an IPO, likely in 2014, according to a person following the process. The lender has hired Bank of America Merrill Lynch, BBVA, Citi and Morgan Stanley to manage. The bank specializes in SME, consumer credit and mortgage financing. Last year a group of international investors including Singapore’s Temasek bought a 20% stake in Bajio for $208m, in a transaction representing the exit of Spain’s Banco Sabadell.
Category: Equity
Posted inDaily Brief
Aval Prefers Domestic Equity Route
Colombia’s Grupo Aval is preparing to sell COP2.4trn ($1.27bn) in shares through an equity follow-on in the domestic market, it says. Given the conglomerate’s recent M&A activity, such a sale had been expected by the markets, though perhaps through the SEC process for which it registered earlier this year. The plan to issue in the US market will be postponed as Aval focuses first on this local sale, a spokeswoman says, noting that banks have not yet been hired. Aval does not give additional details. Corficolombiana, part of Aval, would be expected to manage the deal, as it did Aval’s last domestic equity transaction along with Corredores Asociados. A tap of the more familiar domestic investor base, where Aval can anchor with preemptive rights, might allow for the issuer to better control its pricing, say ECM bankers observing the process. “This announcement is a negative for Aval’s shares. Further, given the high trading and forward multiples of [Aval] today, the primary market could demand a considerable discount,” Credicorp says, noting a need for funds to support a busy M&A agenda. Aval completed in April the purchase of BBVA’s Horizonte Colombian pension operation for $530m, and is working on closing the $411m purchase of Guatemala’s Reformador and the $646m purchase of BBVA Panama, both expected to finalize as soon as November. An equity sale might be good for Aval’s bondholders, however, Credicorp says. “The recent M&A activity was constraining severely Grupo Aval’s unconsolidated cash position. This issuance then will improve the conglomerate’s financial health, and lowers the likelihood of further debt offer,” it says. Aval’s last equity deal was a $1.17bn-equivalent domestic follow-on in 2011. It had been seeking the SEC deal since, but has been content funding itself in the international bond market, including $1.6bn last year and $500m this year through its Banco de Bogota subsidiary. JPMorgan, Goldman Sachs, Citi and Morgan Stanley had been hired in asso
Posted inDaily Brief
Fibra Aims for December Window
Mexican developer Grupo Acosta Verde is targeting a November-December pricing for the IPO of its shopping mall-focused real estate fund for Mexico’s Fibra market, according to people following the sale. The fund, to be known as Fibra Sendero, would launch in early November to hit the next window, after filing ahead of the previous September-October window but opting not to launch. The fund will start with 10 operating malls spread throughout five Mexican states, and aims to acquire land to develop six more. The size and exact timing remain to be determined. Sendero’s malls are focused on the middle and lower-middle classes, also known as C and D classes. BBVA and JPMorgan are global coordinators on the sale, with UBS also on the international portion and Banorte-Ixe managing the local portion. The once-popular Fibra asset class has had it rough lately, with many trading down. Fibra Danhos, the most recent to IPO, priced at the bottom of the range and closed at MXP24.06 Thursday, versus the MXP26.00 IPO price.
Posted inDaily Brief
Middle Easterner Targets Afore Cash
Dubai-based investor Abraaj Group is preparing a fund for Mexico’s certificado de desarrollo de capital (CCD) market, according to regulatory documents. The size and timing for the 10-year fund remain to be determined. The fund will target private equity investment in “mid-size” Mexican businesses in need of growth capital, following the model of the Aureos Latin America Fund. Abraaj bought Aureos Captial, whose small and mid-size investment tickets usually fall in the $0.5m-$15.0m range, in 2012. A parallel private equity fund may be created to invest alongside the CCD funds. The return structure is expected to be principal plus an 8% preferred return, before distributing according to the 80%-20% model typical of private equity. Santander is managing the transaction. Abraaj manages $7.5bn globally, and its LatAm operation is managed from Mexico City, and led by Erik Petersen and Miguel Olea.
Posted inMagazine
Equity market news: Cream of the crop
A well-bid IPO by Mexican dairy producer Grupo Lalabcould spur other consumer-focused companies to raise capital in the equity market. But Brazilian firms are having less luck
Posted inMagazine
Hopes high for share sales in 2014 despite fund outflows
Total equity flows into emerging markets have buoyed expectations of a pick-up in stock issuance by Latin American companies in 2014, despite outflows last month from emerging market equity funds. […]
Posted inDaily Brief
Prologis Targets December Pricing
Prologis is looking at a mid-December pricing for the IPO of its Fibra real estate fund, according to people following the deal, expected to officially launch as soon as the first week of November. The US property manager’s Prologis Property Mexico fund is to initially hold 177 manufacturing and logistics properties in several Mexican cities, according to regulatory documents. The size and exact timing remain to be determined. Banamex, Banorte-Ixe, Actinver and Credit Suisse are managing the transaction.
Posted inDaily Brief
Actinver Wants Equity Capital
Mexico’s Grupo Financiero Actinver is planning an equity follow-on targeting more than MXP800m ($62m), according to regulatory filings, with pricing estimated for December 10. The brokerage is offering 58.1m primary shares, assuming a 15% greenshoe. Such a deal would raise MXP848m at Tuesday’s MXP14.60 closing price. The shares are up more than 16% this year. Actinver expects to spend 67% of the proceeds on funding its existing operations, 13% on working capital and 20% on expanding into new product areas. Actinver and BBVA are managing the transaction. Actinver raised $68m-equivalent in its 2010 IPO.
Posted inDaily Brief
Chilean Advances Capital Raise Plans
The board of Chile’s Invexans plans to submit to shareholders in November a $250m capital raise, it says. The Chilean cable manufacturer split from Madeco would use the funds primarily to increase its participation in French cable maker Nexans. Invexans has the option to lift its share in Nexans to 28% until November 2015. Luksic family vehicle Quinenco controls Invexans with a 66% stake.
Posted inDaily Brief
TV IPO Receives Regulatory Go-Ahead
Chilean Regulators have approved the IPO plans of the Canal 13 television station, which is targeting approximately CLP20bn ($40m). It remains unclear if the issuer will target a deal before the end of the year, or if it will wait until 2014. Celfin and Banchile are managing. Grupo Luksic owns 66% of the broadcaster, buying it in 2010 from the Pontificia Universidad Catolica de Chile, which retains a 33% stake.