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.
Category: Equity
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.
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.
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.
OHL Mexico Returning to ECM
OHL Mexico is planning to raise additional funds in the equity capital markets, it says. The unit of the Spanish concession operator plans an all-primary transaction with Mexican and international tranches. It does not indicate size or timing, though filing now sets up a likely July sale. BBVA and UBS have been hired to manage, the transaction, which will raise funds to make investments in projects and repay debt. The issuer raised $900m-equivalent in a 2010 IPO.
Catalans to Slim Down Bank Stake
Grupo Financiero Inbursa is preparing a follow-on equity sale in which CaixaBank will sell some of its holdings in the Carlos Slim owned-bank, according to regulatory documents. The number of shares sold in the all-secondary transaction remains to be set, though the Barcelona-based lender says it is looking at the sale of 10% of the Mexican bank. A 10% position should be worth more than $1.4bn based on Inbursa’s MXP182bn ($14.66bn) market cap. Caixa owns 20% of Inbursa, having bought in to it in 2008. Documents filed Thursday don’t indicate the timing, though a filing this week likely sets the issuer up for a late June or July pricing. The deal is to include both international and Mexican tranches. Credit Suisse, Inbursa and UBS have been hired as global coordinators, with BTG Pactual as bookrunner on the international sale and Citi and BBVA joining on the Mexican portion. Caixa is raising funds to boost its Tier 1 capital.
Mexican Hotel Readies IPO
Mexico’s new ECM issuance pipeline is filling up rapidly, with Hoteles City preparing to become the latest Mexican to IPO. The operator of hotel chains including City Suites and City Express is planning a sale of primary and secondary shares in the US and international markets, according to a prospectus. The size and exact timing remain to be determined, though the documents suggest a June pricing at the soonest. 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 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. It booked MXP932m ($75m) revenue in 2012, up from MXP715m in 2011. City joins follow-ons from Inbursa and Fibra Hotel in Mexico’s ECM pipeline.