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.
Category: Equity
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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.
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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.
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Brazilian Preps Commercial RE Fund
Brazilian asset manager TRX Gestora de Recursos is preparing a BRL150m ($77m) commercial real estate focused fundo de investimento imobiliario (FII) transaction. The TRX Varejo fund plans to acquire commercial and retail-focused properties, according to a prospectus. The fund aims to begin meeting investors in early May and close subscriptions by May 29. The transaction may be upsized by as much as BRL53m. Bradesco is managing the sale.
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Sempra Mexico Heard Close to Launch
Sempra Mexico has initiated pre-education meetings with investors, ahead of an IPO that could launch as soon as this week and price later this month, according to people familiar with the matter. The size remains to be determined, though a deal of at least MXP5bn ($394m) is expected. The carve-out sale should represent 15%-20% of the capital of the Mexican unit of US-based Sempra energy. The IPO would be the country’s first public equity offering in the energy sector. Citi, Credit Suisse and Deutsche Bank are managing the local and international portions, joined by BBVA Bancomer on the domestic tranche. The issuer is seeking funds for general corporate purposes, investments and expansion. The issuer raised MXP5.2bn in 2018 and 2023 domestic bonds last month, the first Mexican local bond deal by a non-government energy sector entity. In October, Sempra Mexico won a 25-year contract to build and operate a pair of gas pipelines in the state of Sonora, which should require a $1bn investment. Sempra operates five gas pipelines and a regasification terminal in Mexico, and derives about 60% of its revenues from CFE contracts. The company plans to change its name to Infraestructura Energetica Nova, according to a regulatory filing.
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Argie Bolsas Plan Tie-up, IPO
The Bolsa de Comercio de Buenos Aires and the Mercado de Valores de Buenos Aires (Merval) plan to create a joint exchange and hold an IPO for shares of the combined entity, to be called Bolsas y Mercados Argentinos, the pair says. The finalization of the agreement comes after each side’s president and boards approved the plan, which was initially discussed last year. The two will each contribute their respective shares in securities depository Caja de Valores as well as fresh capital.
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Mutliplan to Meet Investors
Brazil’s Multiplan is to begin investor meetings Thursday ahead of an equity follow-on targeting more than BRL600m ($309m), with pricing scheduled for March 27, according to a prospectus. To raise funds for growth, the mall operator is planning on selling 10.4m shares, assuming a 15% greenshoe. This would indicate a BRL610m deal based on Monday’s BRL58.67 closing price. A 20% hot issue is also possible. In previous documents, Multiplan had estimated starting a roadshow next week and pricing in the first week of April. Bank of America Merrill Lynch, Bradesco, BTG Pactual, Credit Suisse and Itau are managing. Multiplan’s last widely-marketed visit to the ECM was in 2009, raising BRL670m, which it followed with a BRL122m accelerated bookbuild in 2010.
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Maxcom Extends Tender
Maxcom Telecomunicaciones has extended the deadline for its bond and equity tender offers, it says, to March 27 from March 20. The early acceptance deadline for the bond offer is also pushed back to March 13 from Tuesday. The Mexican telecom is targeting any and all of its 11.0% 2014 bonds, as part of the conditions for its sale to a private equity buyer agreed in December. It is offering holders new 2020 step-up notes in exchange for the 2014s, at a rate of $1,000 per $1,000 principal before the early deadline, and $930 per $1,000 after. The 2020 bonds pay 6.0% during the first three years, 7.0% during the next two years and 8.0% during the final two years. There is $200m of the 2014s outstanding. It is also targeting up to 250m CPO shares and 50m class A shares, offering MXP2.90 ($0.22) per share. The debt and equity offers are each contingent on completion of the other. The offers follow the agreement for Mexican private equity firm Ventura Capital Privado to buy Maxcom, at an enterprise value of about $270m.
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Santander to Retap Agencias FII
Santander is preparing to reopen its fundo de investimento imobiliario (FII) fund, raising BRL354m ($179m), it says. The reopening price is set at BRL110.50 per quota, as the shares are known. The quotas closed at BRL109.35 Friday. The Santander Agencias FII is comprised of 21 properties housing operations of Santander and other banks in five different Brazilian states. The preferential offering period is scheduled for March 6-14, with remaining shares sold through the end of the month. The transaction may be upsized by as much as 20%. Santander is managing the sale, along with BTG Pactual and Rio Bravo. The first offering of shares in the fund raised BRL400m in December, drawing about 10x demand, according to a banker on the deal.
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Artha Readies CCD Follow-up
Artha Capital is planning to raise a new certificado de capital de desarrollo (CCD) fund, according to regulatory documents, what would be the Mexican investment firm’s second transaction in the asset class. The 2023 fund, with a size yet to be determined, will target investment in commercial, office, industrial and mixed-use real estate. Artha’s original CCD raised MXP2.57bn in 2010. The fund will feature the return structure common to CCDs and to private equity – investors receive their investment plus a to-be-determined preferred return, with additional proceeds divided 80%-20% between investors and the manager. BBVA Bancomer and Banorte-Ixe are managing. Artha was founded in 2009 by ex-banker Carlos Gutierrez and real estate executive German Ahumada.