Corporacion Inmobiliaria Vesta is targeting more than MXP4.0bn ($309m) from its equity follow-on, and has set a June 25 pricing date. The Mexican real estate developer is offering 120m primary shares and 44.5m secondary shares, assuming a 15% greenshoe, which would mean a MXP4.37bn deal at Wednesday’s MXP26.57 closing price. It expects to sell two-thirds of the primary portion globally and one-third in Mexico. DEG, a private sector financing arm of German development bank KfW, and the real estate investment arm of the German Deka are sellers in the secondary portion. The sale should cut their combined stake from 18.12% to 5.19%. Vesta owns 87 industrial properties and distribution centers throughout Mexico, with a market value of around $749m. Credit Suisse and Santander are managing the transaction. Vesta sold a $250m-equivalent IPO in July last year, which was priced at the low end of a MXP19.0-MXP21.00 range. Mexican investors bought two-thirds of that deal. The follow-on joins a busy pipeline, which next features the IPO of Hoteles City, targeting MXP3.22bn and scheduled to price today.
Category: Equity
Batista Sells OGX Shares
Brazilian billionaire Eike Batista has sold BRL122m ($57m) worth of shares in OGX Petroleo & Gas Participacoes, according to regulatory documents. The controller sold 70.5m shares between May 24 and May 29, at prices ranging from BRL1.75 to BRL1.85 per share. Shares closed at BRL1.17 Tuesday. OGX’s 2018 bonds dropped 8 points to 48-50 Tuesday, according to a trader. The company has been challenged, with Fitch last month lowering its rating to B minus from B. The agency was concerned about OGX’s liquidity following the acquisition of 13 exploratory blocks during a time in which the company is implementing an aggressive investment program and struggling to bring oil and gas production on line. Batista granted OGX a $1bn put option last year that is available through April 2014. The billionaire’s stake in OGX declined to 58.92% at the end of May from 61.1% at the end of April.
Inbursa Sets FO Timing
Mexico’s Grupo Financiero Inbursa has set June 25 as the date to price the follow-on sale of the 6.4% stake belonging to CaixaBank, according to people familiar with the deal. The sale of 423m secondary shares would raise MXP11.70bn ($910m) at Tuesday’s MXP27.65 closing price, or MXP11.00bn if done at the MXP26.00 at which Caixa sold 3.7% directly to Inmobiliaria Carso last week. Both the sale to Carso, like Inbursa a Carlos Slim company, and the upcoming follow-on are part of a plan for Caixa to raise funds by selling a10% stake in Inbursa. After the follow-on, Caixa expects to hold 9%-10% in the Mexican bank. Credit Suisse, Inbursa and UBS are global coordinators, with BTG Pactual as bookrunner on the international portion of the sale and Citi and BBVA joining on the Mexican portion. Caixa is raising funds to boost its Tier 1 capital. Next up in the Mexican ECM is the IPO of Hoteles City, scheduled for Thursday and targeting MXP3.22bn.
Latam Defines Capital Raise, Gets Rating
The board of Chile’s Latam Airlines Group has approved a $1bn capital raise through the issue of 63.5m shares, with proceeds destined for fleet enhancement, financial development, executive compensation is also included as one of the funds’ uses. Separately, S&P has rated the airline at BB, it says. Formed after the merger of Chile’s Lan and Brazil’s Tam in June 2012, the airline is expected to see operating results improve in the coming years, alongside market conditions in Brazil, S&P notes. “Latam’s business risk profile assessment reflects the company’s strong competitive position as the main carrier in Latin America due to its leadership in several domestic markets in the region, capillarity, diversified international routes, and a major cargo business,” says S&P. The outlook is positive.
OMA Sets ICA Selldown Timing
Mexico’s Grupo Aeroportuario del Centro Norte (OMA) has indicated a June 25 pricing for an all-secondary share equity follow-on that targets more than MXP4.0bn ($313m). In the deal, the Aeroinvest subsidiary of construction company ICA is selling 95m shares, assuming a 15% greenshoe is used. This would raise MXP4.16bn if done at Friday’s MXP43.83 closing price. Aeorinvest holds 42% of OMA, and is expecting to come away from the sale with 18%. OMA expects 57m of the shares to be sold internationally, and 38m in Mexico. Bank of America Merrill Lynch and BBVA are managing the sale, joined by Barclays and Morgan Stanley on the international tranche and Santander on the domestic. ICA is raising funds to combat what ratings agencies have identified as sagging financial metrics. The builder’s cash flow generation has suffered in a weaker construction market.
Volaris Lays out IPO Plans
Mexican low-cost airline Volaris is planning to IPO, in a transaction that will include US ADS, according to regulatory filings. The size and timing have not been determined for the deal, which will include primary shares as well as secondary shares sold by several funds and individuals. The US documents indicate a $100m size, though the sale could end up being larger. Volaris indicated plans to IPO in 2011, and may find conditions this year – a record one so far for Mexican ECM issuance – more acceptable. Filing now sets the airline up for a likely end of June or July sale. Proceeds are marked for general corporate purposes and to repay debt. Volaris booked MXP494m ($39m) Ebitda in 2012, after seeing negative Ebitda of MXP160m in 2011. Deutsche Bank, Morgan Stanley, UBS, Evercore and Santander have been hired to manage, joined by Barclays and Cowen on the international portion. Volaris joins Brazil’s Azul in hoping to IPO before the end of July. Up next in Mexico’s pipeline is an IPO from Hoteles City, pricing June 13 and targeting about $250m.
Cementos Argos Finalizes Share Sale
Cementos Argos has completed the “second round” in the IPO of its preferred shares, allocating an additional COP209.42bn ($111m) to bring the total transaction size to COP1.611trn. The cement producing subsidiary of Grupo Argos sold 27m shares in the second round, it says, out of a possible 32m, at the same COP7,700 per share price that was set last month at the pricing of the first round – the low end of a COP7,700-COP9,300 range. Though both rounds, it sold 133m shares to local investors and 76m to international buyers in the form of ADR, and fell short of a COP2trn-plus target it originally planned. The deal was said to receive about 1.5x demand in the first round and was heard driven by existing shareholders, though Grupo Argos – owner of 60% prior to the sale – chose not to exercise its rights in the offer. The issuer plans to use 20% of the funds raised to repay debt, and the remainder for growth, with both organic and expansion and acquisitions possible. Bancolombia, JPMorgan and HSBC managed the sale, with Bank of America Merrill Lynch, Credit Suisse and Itau as bookrunners. The new preferred shares closed at COP8,150 Wednesday, and the older common shares at COP8,090.
Brazilian Lands Follow-on Funds
Brazil’s Iguatemi has priced a BRL432m ($222m) equity follow-on, coming at a 2.2% discount. The shopping mall operator offered 18.4m primary shares at BRL23.50 each, including a 15% greenshoe, according to the CVM. The price compares to the BRL24.02 closing in Tuesday’s session, during which the share lost 1.9%. Iguatemi expects to spend half the proceeds on greenfield projects, 30% on upgrading existing shopping centers and 20% on acquisitions. Bradesco, BTG Pactual, Credit Suisse and Itau managed the transaction. The deal kicks off Brazil’s contingent of equity issuance in the June-July window, and had been expected to have little problem pricing. A bigger test will be the IPO of Votorantim Cimentos, targeting an BRL8.0bn June 18-20. Debuts from CPFL Renovaveis and Azul and a follow-on from MPX are to follow. Iguatemi brings the region’s ECM volume this year to $19.74bn from 40 deals, according to Dealogic, well ahead of the $8.37bn raised in the corresponding period in 2012.
Grana y Montero Plans US Listing
Peru’s Grana y Montero is preparing to hold an equity follow-on, a deal that will include the debut of ADS shares in the US, according to regulatory documents. The construction company expects to start a roadshow Monday for the approximately $400m transaction planned for the first week of July, corporate investment manager Antonio Rodriguez Canales tells LatinFinance. “We think this is the moment. We find a lot of appetite for issues from Peru and Chile,” he says. About 60% of the proceeds will go to infrastructure projects, 20% for acquisitions, 10% for the purchase of land for its real estate business and 10% for general corporate purposes, according to documents. BTG Pactual, Credit Suisse, JPMorgan and Morgan Stanley are managing. The ADS will represent a to-be-determined number of Grana common shares, which closed Tuesday at PES11.30 ($4.15) each. Rodriguez Canales spoke on the sidelines of the LatinFinance Andean Finance & Investment Forum in Lima Tuesday.
OHL Mexico FO Details Emerge
OHL Mexico is targeting $650m in its planned equity follow-on and expects to price June 20, according to offering documents. It is selling 241.2m primary shares, including a 15% greenshoe, indicating a MXP8.23bn ($648m) deal at Tuesday’s MXP34.11 closing price. The transaction should represent about 13.9% of the unit and result in a 36% free-float. The Mexican unit of Spain’s OHL Concesiones concession operator plans to use about half of the proceeds to make investments in projects and half to repay debt. BBVA and UBS are global coordinators, joined by Goldman Sachs and JPMorgan on the international portion and Santander on the local side. The issuer raised $900m-equivalent in a 2010 IPO.