Quantifying the softer aspects of a business is never easy — but when done right, it can be highly rewarding. The performance of the M&E LatinFinance Brazil Stars Index bears […]
Category: Equity
Posted inMagazine
Equity news: Going strong
A busy pipeline of Brazilian IPOs and follow-ons is setting 2013 up to be one of the better years for Latins in the equity capital markets
Posted inMagazine
Bradesco Seguros investor perception study: Extending coverage
Brazil’s insurance sector is tipped to grow and consolidate say investors and analysts, who would like to see more direct ways of playing the sector
Posted inMagazine
Brazil capital markets: Points of view
Brazil will need to rebalance more than just its stock index to improve the lot of its companies. Yet relative to other countries, its markets might now be set for a second chance
Posted inDaily Brief
Dairy Plans IPO
Mexico’s Grupo Lala is planning to hold an IPO to raise funds for growth, according to regulatory documents. The size and timing remain to be determined, though the dairy products producer is expected to raise less than $1bn-equivalent. Lala is seeking funds to repay bank debt and for its growth plans, which include investments in its existing capacities as well as possible acquisitions in Mexico, Central America and “new geographies.” Lala booked MXP4.76bn ($370m) in Ebitda in 2012, up from MXP4.10bn in 2011. JPMorgan is global coordinator on the transaction, and is joined by Morgan Stanley and BBVA.
Posted inDaily Brief
Interacciones Targets Re-IPO
Grupo Interacciones is preparing an equity offering, it says, and expects to approve the plan at an October 9 meeting. The specialist in public sector and infrastructure lending has a small and illiquid float, meaning the follow-on transaction would function as re-IPO. The financial group anchored by Banco Interacciones plans to set an indicative price range prior to pricing, according to regulatory documents, as in an IPO. The deal is to include primary and secondary shares, sold through Mexican and international tranches. The issuer would use proceeds to expand operations, specifically sub-sovereign and infrastructure lending. Secondary share sellers would include controller Carlos Hank and members of his family. Interacciones does not indicate the size or exact timing of sale, though documents indicate plans for a post-transaction market float of about 22%. About 7% of the bank’s shares were in the hands of minority holders as of the beginning of the year. The group had MXP140.17bn ($10.89bn) in assets and the beginning of this year and booked MXP1.41bn in net income during 2012, up from MXP1.34bn in 2011. Barclays and Credit Suisse have been hired as global coordinators, joined by Banorte-Ixe and GBM on the domestic portion.
Posted inDaily Brief
Vapores Completes First Phase of Equity Increase
Chile’s Sudamericana de Vapores (CSAV) has raised $261m in the first phase of a $330m capital raise, it says. Luksic family holding vehicle Quinenco subscribed $171m, $47m more than expected. The remaining shares in the shipping and port operation company are to be auctioned today, at the same CLP24.90 ($0.05) share price. Vapores plans to use proceeds to fund the acquisition of new cargo vessels and to prepay a JPY24bn ($243m) loan from American Family Life Assurance Company. BTG Pactual and Santander are managing the transaction.
Posted inDaily Brief
Avianca Files US Sale
Already sounding out investors, Avianca has filed for an equity sale marking the debut of the ADS representing the preferred shares of the Avianca Holdings entity. The airline is seeking to capitalize on momentum generated by the market reaction to Wednesday’s US Fed announcement and the strong secondary market performance of Mexico’s Volaris after its IPO last week. The exact size and timing remain to be set. The Panama-domiciled Colombia-listed holdco is raising funds to modernize the Avianca-Taca fleet. The deal is to include primary shares, as well as secondary shares owned by former Taca executives Juaquin Palomo and Alfredo Ratti and the entities representing the controlling Eframovich brothers and Kriete family. JPM and Citi are leading the transaction, joined by UBS, BTG Pactual and Deustche Bank.
Posted inDaily Brief
ECM Deals Line Up
Several would-be equity issuers are eager to capitalize on the improved market sentiment seen last week, though conditions may be trickier than in the DCM, bankers say. A handful of issuers are expected to test the waters in the September-October pricing window, likely also encouraged by Volaris, which priced a $400m IPO last week at the bottom of the range but has seen strong secondary trading since. “With Volaris and with the Fed announcement, people are refocusing on trying to launch before 2Q numbers go stale. The pipeline is moving again,” says one ECM banker, cautioning that the drop in the Bovespa and Bolsa Thursday and Friday means the rally may not be as strong as hoped. After sounding out investors last week, Brazilian iron parts maker Tupy is expected to launch as soon as this week. The follow-on should target BRL1bn ($452m). Brazilian transportation management company Sascar should also launch an IPO as soon as this week, though peer Ouro Verde is heard choosing to sit out this window. Education specialists Ser Edcucacional and Anima Educacao are heard planning to follow, also launching IPOs as soon as this month. Outside of Brazil, Chile’s Geopark is in the pipeline and heard close to launch, and Avianca has filed ahead of a launch that could also come before the end of the month. Not all issuers will find it easy, however, as meeting equity investors’ expectations remains challenging even when markets are up. “There are still some valuation gulfs in a number of situations,” says one ECM banker with a few Brazilian deals waiting to go. LatAm equity issuers had raised $27.54bn through Friday from 60 deals, up from $11.85bn from 50 in the corresponding period of 2012, according to Dealogic data. Very little separates the top three bookrunners by volume this year, with Itau ($3.14bn) just ahead of Credit Suisse ($3.09bn) and BTG Pactual ($2.96bn).
Posted inDaily Brief
Peru Holdco Plotting IPO
Enfoca, the Peruvian investment company with holdings including retailer Maestro, is preparing for a possible IPO, according to people following the process. A filing could come as soon as this month if the group wants to issue in the September-October window. Bank of America Merrill Lynch and Deutsche Bank are said to be leading the deal, joined by Morgan Stanley, Itau and Larrain Vial. Enfoca’s holdings include stakes in Maestro, fishery Pesquera Diamante, ceramics manufacturer Celima, miner Minera La Gloria and medical services provider Oncasalud.