Jamaica’s National Commercial Bank (NCB) has launched an equity follow-on representing the debut of its ADRs, it says, targeting more than $200m. The lender is reviving a process it initiated in May of last year, and has started marketing ahead of a February 6 pricing. On offer are 16m ADRs, representing 804m common shares, at $13.00-$15.00 each, indicating a $224m transaction if done at the midpoint. The bank’s common shares, listed in Jamaica and Trinidad & Tobago, closed at JAD21.00 ($0.23) Thursday. Of the total, 3.6m ADRs are secondary shares sold by Chairman Michael Lee-Chin, who should see his stake in the bank go from 64.0% to 43.6%. NCB is raising funds for general corporate purposes, including organic growth and possible acquisitions. JPMorgan and Macquarie are managing the sale.
Category: Equity
Enersis Conisders Adding ADRs to Equity Sale
Chile’s Enersis is considering offering part of its planned CLP2.84trn ($6.03bn) equity capital increase in foreign markets through the issuance of ADRs, it says. No definitive plans have been made, though the unit of Spain’s Endesa notes it is in discussions with 16 Chilean and international potential bookrunners, including, BTG Pactual, Bank of America Merrill Lynch, Banchile, BBVA and Credit Suisse. The electricity holdco plans to offer 16.44bn shares at CLP173.00 per share. The timing remains to be determined for the follow-on, which was approved last month after much discussion with regulators and minority holders. Endesa plans to subscribe its portion of the transaction with its LatAm assets that don’t already belong to Enersis, and needed several months 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 assets under Enersis.
Paraguayan Moves Closer to IPO
Paraguay’s Dahava Petroleos is nearing an IPO that could raise up to $100m. The E&P operator has completed the filing process and is awaiting final approval from the CNV securities regulator, it says. Once approval is granted, it will seek to file a prospectus and hold the IPO as soon as possible, co-founder Ari Thaler tells LatinFinance. He notes that both international buyers, as well as domestic institutional investors have expressed interest. After the Paraguayan listing, an additional fundraising on London’s AIM is being considered, he says. Dahava plans to use proceeds for an oil and gas drilling program in the Chaco basin in northern Paraguay. Paraguayan brokerage Valores, part of the Andorra-based Credit Andorra Group, is managing the sale. The issuer is part of international private equity firm Dahava Group.
Estacio Follow-on Opens Brazil ECM
Brazil’s Estacio has priced a BRL769m ($377m) equity follow-on, conceding a 6.4% discount in Brazil’s first equity sale of 2013. The education company is selling 18.3m shares, assuming a 15% greenshoe, at BRL42.00 each, according to the CVM. The price compares to Wednesday’s BRL42.75 closing level. The shares rose 1.79% in Wednesday’s session and are up nearly 5% since the transaction’s launch. The sale, heard oversubscribed, includes 3.6m secondary shares sold by Private Equity Partners. Estacio is raising funds for acquisitions and organic expansion. Bank of America Merrill Lynch, Credit Suisse and Itau managed the transaction. Estacio held its IPO in 2007 and last visited the equity markets for a BRL685m all-secondary share follow-on in 2010. Next up in Brazil is an IPO from IT provider Linx, targeting more than BRL400m and scheduled to price February 6. Next week will see the opening of the market for Mexican issuers, with a $1bn-plus follow-on from Fibra Uno Tuesday and $300m re-IPO from Cultiba Wednesday.
Cultiba Sets Re-IPO Date
Mexico’s Cultiba plans to price an equity follow-on January 30, according to sources familiar with the transaction, targeting at least MXP3.94bn ($312m). Though the Pepsi bottler formerly known as Embotelladoras Unidas has existing shares, the upcoming deal is being treated as an IPO. It is offering 112.7m shares, including a 14.7m share greenshoe, at MXP35.00-MXP40.00 each, according to regulatory documents, indicating a MXP4.20bn transaction at the midpoint. The total includes 23.75m secondary shares to be sold by a group of holders. The shares are to be sold in international and local tranches, and represent 15.6% of the company, assuming the greenshoe is exercised. The issuer is raising funds to repay bank loans and also targets additional capital for investments. The bottler has a $125m loan due 2022 with Rabobank, costing it Libor+225bp, and an MXP1.61bn ($126m) 2022 loan with Banorte at TIIE+160bp. Bank of America Merrill Lynch, Banorte-Ixe, BBVA Bancomer, Credit Suisse, Inbursa and JPMorgan are managing the transaction.
Estacio Ready for Follow-on
Brazil’s Estacio is set to price an equity follow-on today, which should raise more than $350m. The education company was heard with oversubscribed books Tuesday afternoon. Estacio is offering 15.9m primary shares, as well as 3.1m secondary shares sold by Private Equity Partners. This would indicate a BRL798m ($391m) deal at Tuesday’s BRL42.00 closing price. Estacio is raising funds for acquisitions and organic expansion. Bank of America Merrill Lynch, Credit Suisse and Itau are managing the transaction. Estacio held its IPO in 2007 and last visited the equity markets for a BRL685m all-secondary share follow-on in 2010.
Eike Seeks CCX Delist
Brazilian billionaire Eike Batista plans to delist his CCX coal miner, by buying up all of the outstanding shares through a public offer, CCX says. The timing of the offer remains to be finalized, with Batista establishing a BRL4.31 per share maximum price. The maximum level represents a 37.7% premium to Monday’s BRL3.13 closing price, which was up BRL0.97 during Monday’s session. The plan comes “due to the need to undergo changes in its strategic plans after the deterioration of conditions on the coal market,” the company says.
Brazil Looks to Sell Reinsurer Stake
Brazil has advanced the privatization process of government-controlled reinsurer IRB-Brasil Re, according to an official statement. The government plans a capital increase of 2%-15%, and says it would waive its preemptive rights. The price is set at BRL2,577 ($1,260) per share. A shareholder agreement must be signed between the government and BB Seguros, Bradesco Auto Re, Itau Seguros, Itau Vida e Previdencia as well as a fund linked to Caixa Economica Federal. Brazil’s government owns 50% of IRB, with Bradesco, Itau and a group of Brazilian insurance companies owning the remainder. It does not indicate the number of shares to be sold or the timing.
Linx Launches IPO
Linx, a Brazilian provider of software to the retail sector, has launched an IPO targeting at least BRL450m ($221m), with pricing scheduled for February 6. Following recent pre-education meetings, the issuer is looking to sell 19.6m shares, assuming a 15% greenshoe, at BRL23.00-BRL27.00 each, according to regulatory documents, raising BRL490m at the midpoint. The shares include 6m secondary shares to be sold by a private equity fund linked to Itau. Betting that a retail focus and solid growth story will overcome the usual investor doubts about smaller deals, Linx is seeking to raise funds for acquisitions and for working capital. BTG Pactual, Credit Suisse, Itau and Morgan Stanley are managing the sale. Linx booked BRL56m ($27m) in Ebitda in 2011, up from BRL40m in 2010. Linx offers both cloud-based and on-premises products for Brazilian retailers. It has been operating for 27 years and claims 29% market share.
Pepsi Bottler Advances FO
Mexico’s Cultiba has set the price range for its “re-IPO” equity follow-on, targeting at least MXP3.94bn ($312m). The Pepsi bottler is offering 112.7m shares, including a 14.7m share greenshoe, at MXP35.00-MXP40.00 each, according to regulatory documents, indicating a MXP4.20bn transaction at the midpoint. The total includes 23.75m secondary shares to be sold by a group of holders. The timing has not been indicated. The shares are to be sold in international and local tranches, and represent 15.6% of the company, assuming the greenshoe is exercised. The company formerly known as Grupo Embotelladoras Unidas is raising funds to repay bank loans and also targets additional capital for investments. The bottler has a $125m loan due 2022 with Rabobank, costing it Libor+225bp, and an MXP1.61bn ($126m) 2022 loan with Banorte at TIIE+160bp. Bank of America Merrill Lynch, Banorte-Ixe, BBVA Bancomer, Credit Suisse, Inbursa and JPMorgan are managing.