Brazil’s Cedae has officially cancelled its IPO plans, according to the CVM. Targeting BRL1bn ($510m), the borrower is said to be waiting for better conditions. A re-filing later this year is not out of the question. Bank of America Merrill Lynch, Bradesco, BTG Pactual and Itau had been managing the process, initiated last year. Rio de Janeiro state water utility has turned to the local bond market for funding, raising BRL150m last month, and bankers say that market continues to be a viable option for Cedae.
Category: Equity
Posted inDaily Brief
Hotel Fibra Builds Books
Mexico’s Fibra Inn is heard with books well oversubscribed coming into today’s scheduled IPO pricing. The hotel focused Fibra real estate trust would raise MXP3.80bn ($303m) at the midpoint of its price range, assuming a 15% greenshoe is used. The issuer is offering 127m primary and 79m secondary shares at MXP17.25-MXP19.75 each. It expected about 50% of the sale to be placed internationally, according to offering documents. The secondary portion includes shares to be sold by Indigo Capital, which is to keep a small holding, and Citigroup Venture Capital International, which exits completely. The deal should result in a 77% public float. Proceeds will be used to purchase assets to add to the trust’s portfolio, which initially includes eight Holiday Inn and Hampton Inn hotels in seven cities throughout Mexico, and options to buy six more. As with Concentradora Fibra Hotelera – which raised MXP4.14bn through the first hotel-focused Fibra IPO last year – the properties offer a play on the steady growth expected for business travel between Mexico’s cities, rather than the more cyclical tourism industry. Actinver, Credit Suisse and Santander are managing.
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BHG Expects Mid-April Pricing
Brazil Hospitality Group (BHG) is to formally begin meeting investors April 8, ahead of what is expected to be an April 18 pricing of its equity follow-on, according to a prospectus. The tourism-related developer is planning to raise about BRL500m ($255m) in the sale. BTG Pactual, Bradesco, Espirito Santo, Goldman Sachs and Itau are managing.
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BTG Raises Block Trade
BTG Pactual has raised BRL504m ($257m) through an equity block trade, according to sources familiar with the transaction. The 14.5m shares priced at 34.75 last week, versus a BRL34.30 closing level prior to the sale. Shares closed at BRL36.00 Monday. BTG managed the sale itself.
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Masisa Seeks Equity
Masisa is targeting an additional $100m in equity, it says, and will put the matter to a shareholder vote March 21. 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.
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Multiplus Joins FO Pipeline
Multiplus has added its name to the list of Brazilian equity issuers aiming to get a deal out the door before the end of April, with a BRL800m ($408m) follow-on in the works, it says. The exact size and timing remain to be determined, although an initial prospectus estimates an April 16 pricing. The mileage rewards program for Brazil’s TAM raised BRL629m in its 2010 IPO. An IPO from Gol’s Smiles mileage program is expected in April, bringing the number of global peers for Multiplus to two.
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Sempra Mexico Launches IPO
Sempra Energy Mexico, or Infraestructura Energetica Nova (IEnova) as it is to be known going forward, has launched its IPO, targeting MXP6.98bn ($551m) in a March 21 pricing. The Mexican unit of US-based Sempra energy plans to sell 218m primary shares at MXP30.00-MXP34.00, according to a prospectus, indicating a MXP6.98bn deal at the midpoint, or MXP5.69bn at the bottom of the range, where non-Fibra Mexican IPOs have been pricing this year. The total assumes a 15% greenshoe. The sale will represent a 17%-19% float post-IPO. The IPO is to be the country’s first public equity offering in the energy sector, raising funds for general corporate purposes, investments and expansion. IEnova has about $1.35bn in project needs, including a 25-year contract to build and operate a pair of gas pipelines in the state of Sonora. Citi, Credit Suisse and Deutsche Bank are managing the local and international portions, joined by BBVA Bancomer on the domestic tranche. IEnova operates five gas pipelines and a regasification terminal in Mexico, and derives about 60% of its revenues from CFE contracts. The issuer booked $330m in Ebitda last year, and $373m in 2011. It raised MXP5.2bn in 2018 and 2023 domestic bonds last month, giving Mexico its first local bond deal by a non-government energy sector entity.
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BHG Plans FO
Brazil Hospitality Group (BHG) is planning to raise about BRL500m ($255m) through an equity follow-on, the tourism-related developer says. The timing has not been determined, though an initiation of the process in early March lines the issuer up for pricing in April. BTG Pactual, Bradesco, Espirito Santo, Goldman Sachs and Itau have been hired to manage the sale. BHG joins a growing Brazil ECM pipeline, beginning with mall operator Multiplan’s follow-on scheduled for March 27. It should be followed by IPOs from BB Seguridade, Alupar, Biosev and Smiles, as well as a follow-on from Tupy – all expected to launch within the next 2-3 weeks.
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Chilean Close to IPO
Moller y Perez-Cotapos (MPC) is planning to price an IPO of more than $100m March 26, according to information provided by the lead manager. Investor meetings should begin Wednesday, ahead of what would be the first Chilean IPO since August. The construction company and real estate developer is planning to sell about 40m primary shares and 76m secondary shares including those from Citi Venture Capital. Up to 30% of the company may be floated. MPC is looking to use 50% the proceeds to strengthen its capital structure and pay debt, and 50% to fund its growth plan. LarrainVial is managing. Chile’s last IPO was an $88m-equivalent sale from fellow construction sector debutant Echeverria Izquierdo in August 2012.
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Axis Retaps CCD
Mexican investment firm Grupo Axis has raised MXP1.4bn ($110m) through a reopening of its certificado de capital de desarrollo (CCD) to existing certificate holders, it says. The capital call follows the initial MXP1.3bn sale in December, and specifically raises funds for an investment in oil field services company Integradora de Servicios Petroleros Oro Negro. The Axis fund, which has an eventual target of MXP6.5bn, is targeting equity or credit investments across a broad group of sectors.