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.
Category: Equity
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.
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.
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.
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.
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.
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.
Brazilian Joins Bovespa Mais
Brazil’s Senior Solution has become the second issuer to IPO on the Bovespa Mais small-cap platform, raising BRL62m ($32m) while pricing below the range. The IT provider specializing in the financial sector has sold 3.5m primary shares and 2.0m secondary shares, including shares from a 15% greenshoe, at BRL11.50 each, according to the CVM. The price compares to a BRL13.50-BRL15.50 range. The selling shareholders in the secondary portion include BNDES and private equity fund Stratus. Senior Solution plans to use 70% of the proceeds for acquisitions, noting that it has about 40 businesses identified as targets. It also plans to use 20% for working capital and 10% for product development. Banco Votorantim and Banco do Brasil managed the sale.
Prudential Sets Fibra Target
Prudential Real Estate Investors is aiming to raise $800m-rquivalent from the IPO of its Fibra Mexican real estate trust, with pricing scheduled for March 19. The fund, known as Terrafina, plans to sell 340m primary shares at MXP28.00-MXP32.00 each, according to regulatory documents, meaning a MXP10.2bn ($801m) deal at the midpoint. The total assumes a 15% greenshoe. The trust will initially contain 132 industrial properties throughout Mexico and 14 properties in development, coming from Prudential’s PLA Industrial I and PLA Industrial II funds. Proceeds would provide funds to repay debt and for working capital. Citi, Goldman Sachs and HSBC are managing.
Bancolombia Advances FO
Bancolombia shareholders have approved a platform to sell up to $2.4bn in preferred shares, the Colombian bank says. The lender can sell up to 148.2m shares, through multiple follow-on transactions if it chooses. Officials have said that no specific sale is imminent. Bancolombia is looking to raise funds to help finance expansion plans and comply with new global banking regulations. The bank last month spent $2.1bn on HSBC’s Panama operations, a move which has credit rating agencies worried about negative pressure on the Colombian bank’s capital, liquidity, and profitability. In January and February of last year, the bank raised $614m-equivalent in a Colombian domestic equity follow-on, followed by a $300m international tranche.