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.
Category: Equity
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.
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.
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.
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.
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.