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.
Category: Equity
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.
Brazilian Rolls Out RE Fund
JHSF is preparing a BRL400m ($196m) Brazilian domestic market real estate fund focused on residential property. The Rio Bravo Fazenda Boa Vista Capital Protegido Fundo de Investimento Imobiliario (FII) is able to be upsized to as much as BRL540m, according to a regulatory document. The developer is expected to begin marketing February 21. Private equity firm Rio Bravo is the fund’s coordinator and administrator.
Ibema Seeks up to BRL150m
Ibema, a Brazilian manufacturer of boxboard paper, is targeting BRL100m-BRL150m ($49m-$74m) through an IPO, its finance director tells LatinFinance. The issuer has this month registered with the CVM to list on the Bovespa Mais platform for small caps, through there is no timing or urgency to hold the sale. “With the objective of becoming the second-largest boxboard seller by 2014, Ibema wants to begin a consolidation process,” Clecio Chiamulera says. This would largely be through the purchase of other small producers. Eventually, the company would like to raise BRL500m from the capital markets, he adds.
Brazilian Utility Heard Waiting on IPO
Companhia Estadual de Aguas e Esgotos (Cedae) is heard postponing plans for IPO at least until the next issuance window, according to sources familiar with the process. Brazilians who have registered – a group that includes Linx, Senior Solution and Alupar – must launch soon if they wish to price with 3Q numbers by early February. Rio de Janeiro state water utility Cedae is looking for perhaps BRL1bn ($490m) for expansion and maintenance projects, and may come to market later in the year. Bank of America Merrill Lynch, Bradesco, BTG Pactual and Itau are managing the process. Elsewhere in Brazil’s equity market, Estacio is scheduled to raise BRL600m through a follow-on January 23. Queiroz Galvao Oleo e Gas is expected to launch soon its US IPO, according to people following the process, targeting at least $500m.