Colombia’s Grupo Aval is planning to sell shares in the US, according to a regulatory filing, in what would be an IPO of its ADS. The owner of banking and pension operations including Banco de Bogota has indicated a $100m size in the documents, though it is not bound to this amount and the eventual deal should be much larger – if its previous plans for a US offer are any indication. JPMorgan and Goldman Sachs have been hired to manage. Each ADS will represent a to-be-determined number of Aval’s preferred shares. The issuer is raising funds to increase capital in its banking subsidiaries, and possibly for general corporate purposes. It been targeting an ADS debut since at least since 2011, when it also filed initial papers for a US listing and was heard considering at least $1bn. Aval has been funding itself in the bond market – raising $1.6bn last year – and agreed in January to buy BBVA’s Horizonte pension operation in Colombia for $530m. Its last visit to the Colombian equity market was a $1.1bn-equivalent sale representing the debut of the group’s preferred shares, done to pave the way for a US sale.
Category: Equity
Hoteles City Sets Bolsa Check-in Date
Hoteles City plans to price its IPO June 13 and is targeting $250m, according to regulatory documents. The Mexican operator of hotel chains including City Suites and City Express is planning a sale of 87m primary and 34.5m secondary shares at MXP24.00-MXP29.00 each, indicating a MXP3.22bn ($251m) size at the midpoint. The total assumes a 15% greenshoe. Secondary share sellers include founders and company officials, as well as investors including Wamex, the IFC and the IDB. Proceeds from the primary portion will be used for expansion. Bank of America Merrill Lynch, Citi and Morgan Stanley are managing the sale, joined by Actinver on the domestic tranche. Founded in 2003, City Hoteles claims to have grown at an average of 34% per year since, reaching 71 hotels throughout Mexico at the end of last year, to make it Mexico’s third-largest operator. Following Thursday’s follow-on from Fibra Hotel, City Hoteles is joined by Inbursa, Vesta and OHL Mexico in a growing June-July Mexican equity pipeline.
Fibra Hotel Nears ECM Return
Concentradora Fibra Hotelera Mexicana is scheduled to price an equity follow-on today targeting more than MXP4.5bn ($356m). The hotel real estate fund owned by Grupo GDI and known as Fibra Hotel is planning to sell 196m primary shares, according to regulatory documents, what would be a MXP5.03bn deal if done at Wednesday’s MXP25.69 closing price. The total assumes a 15% greenshoe. The issuer is raising proceeds for acquiring and developing additional properties, as well as for general corporate purposes, and both domestic and international tranches are available. BBVA and JPMorgan are global coordinators, joined by Goldman Sachs on the international portion and Evercore and Banorte-Ixe on the domestic piece. Fibra Hotel has been widely expected to hold a follow-on after a successful MXP4.14bn IPO in December. It follows the pattern of Fibra Uno, the trust that was the pioneer of the Fibra real estate fund asset class and has been to the market three times to raise more than MXP34bn. The fund includes 39 operating Mexican hotels and 16 in development, under the Fiesta Inn, One and Camino Real brands, in 22 Mexican states. The sale kicks off a busy June-July period in Mexico’s ECM, with Vesta, OHL Mexico and Inbursa all planning follow-ons and hotel operator City Hoteles preparing an IPO.
Voto Cimentos Aims IPO
Votorantim Cimentos has launched its IPO, targeting BRL8.0bn ($3.8bn), with pricing likely the week of June 17, according to people familiar with the plan. Investor meetings are set to begin in Brazil next week, followed by international visits. The cement business of Brazil’s Votorantim conglomerate is planning to sell 286m primary units and 114m secondary units at BRL16.00-BRL19.00 each, according to a prospectus, indicating a BRL8.05bn sale at the midpoint if a 15% all-primary share greenshoe is included. A 20% hot issue of both primary and secondary shares is also available. The target amount suggested by the pricing guidelines is less than the $5.4bn the issuer had estimated in its initial filings. The deal includes a Brazilian tranche and a US ADS tranche expected to make up at least 10% of the sale. A unit represents one common share and two preferred shares. The secondary shares are to be sold by controller Votorantim Industrial. Votorantim Cimentos plans to use 45% of the primary proceeds for organic expansion and acquisitions, 40% for working capital and 15% for investments to improve existing operations. BTG Pactual, Credit Suisse, Itau, JPMorgan and Morgan Stanley are the global coordinators on the transaction, with Banco do Brasil, Banco Votorantim, Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and HSBC as bookrunners. The issuer has operations on five continents, including business in North Africa, India and China. In LatAm, it has stakes in operations in Argentina, Chile, Bolivia, Uruguay and Peru. It reported Ebitda of BRL3.07bn ($1.55bn) in 2012. The deal will offer another test of appetite for large Brazilian deals, following BB Seguridade’s BRL11.5bn IPO in April. In Colombia earlier this month, Cementos Argos priced a $900m-equivalent deal at the bottom of its range. Up next in the Brazilian pipeline is Iguatemi, scheduled to price a BRL480m follow-on Tuesday.
Batista Details CCX Auction
Eike Batista has detailed plans for the auction to repurchase shares in the CCX coal mining unit, scheduled for July 12, CCX says. The Brazilian billionaire is preparing to delist CCX through the operation, which could reach BRL281m ($138m). He is offering shares of the other publicly-traded EBX companies – OGX, LLX, MMX MPX and OSX – in an exchange valuing the CCX shares at BRL4.31 each. The shares closed at BRL3.92 Tuesday. The company says there are 65m CCX shares in the public float.
CCU Plans Additional Equity Capital
Chilean beverage company Compania Cervecerias Unidas (CCU) is planning to issue new shares in order to fund expansion plans. Regulatory filings indicate a CLP340bn ($691m) target. Shareholders are to vote on the matter June 18. Luksic family-controlled CCU is looking at both organic and inorganic expansion.
Azul Taxis Out IPO
Brazil’s Azul is preparing to raise funds through an IPO, according to regulatory documents. The airline does not indicate size or timing, though a filing this week sets it up for a July pricing. The sale is to include primary shares, with a 15% greenshoe composed of secondary shares sold by existing holders. Shares may be sold internationally in the form of ADR. Azul is raising funds for expansion and to repay debt. Banco do Brasil, Goldman Sachs, Itau, Morgan Stanley and Santander have been hired to manage the sale.
CPFL to Retry Renewables IPO
CPFL Energias Renovaveis plans to try again to raise funds in the equity capital market after seeing better issuing conditions this year. The renewable energy generation unit of CPFL is looking to sell primary and secondary shares in an IPO to raise funds to develop its project pipeline, according to a regulatory filing. The timing and size remain to be determined, through the issuer was targeting up to BRL1bn ($488m) when it filed last year. BTG Pactual has been added to the bank lineup, joining Bank of America Merrill Lynch and Itau as global coordinators. Banco do Brasil, Bradesco and Morgan Stanley are bookrunners. The sale includes secondary shares to be sold by investors including funds managed by Patria Investimentos, Bradesco and BTG Pactual, as well as Roberto Sahade, a former official of Ersa, the precursor company to CPFL Renovaveis. The issuer has 5,550 megawatts in development or operation and booked Ebitda of BRL504m in 2012, up from BRL85m in 2011.
Industrial Developer Plans Follow-on
Mexico’s Corporacion Inmobiliaria Vesta is planning to return to the equity capital markets to raise funds for expansion, according to regulatory documents. Following Vesta’s $250m IPO last year, its CEO had indicated the industrial property specialist would be seeking about $200m more in a return visit. The exact size and timing of the follow-on are not yet available. The owner of 87 industrial properties located throughout Mexico plans to use 80% of the proceeds for organic expansion and 20% for M&A activity. Credit Suisse and Santander return as bookrunners. Vesta’s shares, at MXP25.49 ($2.04) Friday, had gained 34% since the IPO, priced at MXP19.00. The issuer joins a rapidly filling pipeline for the June-July issuance window, led by real estate-related plays. Fibra Hotel plans a follow-on and City Hoteles is holding an IPO. The largest deal in the period, though, may be a follow-on offering of CaixaBank’s shares in Inbursa.
Masisa Readies Equity Sale
Chile’s Masisa is seeking CLP45.50bn ($93m) through an equity rights offering scheduled to run May 31 to June 29, it says. The wood products company is offering 1.0bn shares at CLP45.50 each. Proceeds would go toward the financing of the purchase of Mexico’s Rexcel made last year, as well as for working capital. Masisa agreed in August to pay $52m to Mexico’s Grupo Kuo for Rexcel, a maker of particle boards.