Smiles, the mileage loyalty program of Brazilian airline Gol, has hired Bradesco, Banco do Brasil, Credit Suisse, Deutsche Bank, Itau, Morgan Stanley and Santander for its IPO. The sale is to include all primary shares, according to a prospectus. The timing and size remain to be determined, though a filing now sets Smiles up for a late March or April transaction. All of the proceeds from the sale will go to funding the purchase of the passenger loyalty assets currently held by Gol’s VRG unit. The business that will be carved out to become Smiles booked BRL125m ($63m) in Ebitda last year, after getting BRL164m in 2011 and BRL204m in 2010.
Category: Equity
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Itaú 2013 Investor Perception Study: Shopping spree
Retail, mining and processed foods are investors’ favorites according to LatinFinance’s survey of six industries. Andean countries come out on top and Argentina, at the bottom
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Equity: A price to pay
The equity markets got off to a better start this year than last, but the results have so far been mixed. Optimists’ mantra that markets are open for the right names at the right price proved to be true in the first weeks of the year.
Posted inDaily Brief
Fibra Inn Launches IPO
Mexico’s Fibra Inn has launched an IPO targeting more than MXP3.5bn ($274m), with pricing scheduled for March 13. What would be the fourth entrant into Mexico’s real estate trust asset class plans to sell 127m primary and 79m secondary shares at MXP17.25-MXP19.75 each, according to regulatory documents, indicating a MXP3.80bn sale at the midpoint and assuming the exercise of a 15% greenshoe. The issuer expects about 50% of the sale to be placed internationally. 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. 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. The deal should result in a 77% public float.
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Gol Smiles at CVM
Brazilian airline Gol has filed the initial regulatory documents for the IPO of its Smiles mileage loyalty company, it says. The specific details remain to be determined, but taking the initial steps now lines the issuer up to price in late March or April. A $435m sale for TAM’s Mutliplus program – one of the few publicly-traded comps in the world – has performed well following a rough debut in 2010. Gol, however, has struggled a bit, with a poorly-bid $200m bond that performed poorly in the aftermarket earlier this month. Smiles recently named Leonel Andrade as CEO.
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Argos Eyes Share Sale
Colombia’s Cementos Argos is targeting an equity follow-on of preferred shares, according to remarks made by CEO Jorge Velasquez on a conference call. Details and timing remain to be determined, but the maximum size would be 250m shares, which would raise COP2.36trn ($1.30bn) at Tuesday’s COP9,450 closing price. The matter awaits approval by shareholders March 15.
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BdB Advances Seguridade IPO
Banco do Brasil has made the initial filing for the carve-out IPO of its BB Seguridade insurance unit, according to regulatory documents. The state-controlled lender does not yet indicate the size of the transaction, though the market is expecting as much as BRL5bn ($2.53bn). The deal is to include both primary and secondary shares, representing up to 40% of the unit. The bookrunners include Banco do Brasil, BTG Pactual, Bradesco, Brasil Plural, Citi, Itau, and JPMorgan, according to people following the process. The state-controlled bank is seeking to consolidate its insurance businesses into a single company, BB Seguridade, to lower costs, increase scale and be better prepared for possible expansion. BB Seguridade would control Banco do Brasil’s two insurance joint ventures with Madrid-based Mapfre, and the bank plans to also expand into dental and health insurance brokerages. The listed company would directly control two holdcos, one responsible for insurance brokerage activities and the other for all other insurance operations.
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Enersis Defines US Tranche
Enersis is offering 6.5m shares in the form of ADS, it says, as a part of the preferential subscription period launched Monday for its equity CLP2.84trn ($6.02bn) follow-on. Shares will be offered at $19.19 per ADS, the equivalent of a CLP8,650 per ADS price plus a premium to cover fx changes. The offer runs through March 21, closing ahead of the March 26 domestic closing date. JPMorgan, BTG Pactual and Bank of America Merrill Lynch are global coordinators on the ADS sale, with Banchile, BBVA, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, Larrain Vial, Morgan Stanley and Santander as bookrunners. In total, the holding vehicle for certain LatAm electricity sector units of Spain’s Endesa is offering up to 16.44bn shares at CLP173 each. JPMorgan, Celfin, BBVA, Santander, Larrain Vial, Banchile and BAML are managing the local side. The controversial sale was approved in December, after months of back and forth with regulators and minority investors. Endesa plans to subscribe its portion of the transaction with its LatAm assets that don’t already belong to Enersis, and needed negotiations with Chilean pension funds and multiple outside evaluations to reach agreement on the assets’ value. The process will raise funds for acquisition opportunities and streamline Endesa’s operations in LatAm by placing all of its holdings under Enersis. Enersis shares closed at CLP177.49 Tuesday.
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Banco de Chile FO Reaches $465m
Banco de Chile has concluded the preferential subscription period of its CLP250bn ($528m) equity capital raise, with an 87% of the shares subscribed, it says. So far, 3.43bn of 3.94bn shares have been subscribed, raising CLP220bn, and the remaining 13% will be sold through a public auction. The price was set in November at CLP64.00 per share. The bank is raising funds for growth. Banco de Chile shares closed Monday at CLP77.84.
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CCX Sticks with Delist Price
Brazil’s CCX has reaffirmed the BRL4.31 ($2.19) per share buyback price for offer targeting the float of the CCX Colombia coal unit, it says, despite the price being just above an outside evaluation. An independent examination by Brasil Plural has indicated a BRL3.83-BRL4.24 range. The timing remains to be set, with the Eike Batista company submitting for regulatory approval. Shares closed Monday at BRL3.93 each.