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.
Category: Equity
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.
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 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.
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.
CorpBanca Prices Well-Bid FO
Chile’s CorpBanca has priced the international portion of its equity follow-on, raising CLP75bn ($158m) and seeing 4x demand. The acquisitive bank priced the equivalent of 12bn common shares at CLP6.25 each, according to people familiar with the transaction. The level represents a 5.9% discount to Tuesday’s CLP6.64 closing price. More than half of the shares sold were in the form of ADS. About 72% of the buyers were US-based, with 14% of the sale going to Europe, 8% to Chile and the remainder to other geographies. The deal included 1.35bn secondary shares sold by vice chairman Fernando Aguad. Tuesday’s international offer is to be followed by a Chilean rights offering at the same price, open today through February 15. The total shares sold should reach 47bn, raising some $660m. The controlling Saieh Group has waived its preemptive rights. Proceeds are to be used to help fund the $1.28bn purchase of Colombia’s Helm Bank announced in October. BTG Pactual managed the sale, with Celfin and CorpBanca as co-managers. At the time of the Helm announcement, the IFC agreed to buy 5% of the bank, a stake to be included in the upcoming rights offering and estimated at the time to be $225m. CorpBanca introduced itself to the international bond markets earlier this month, with an $800m 3.125% 2018 bond that came at a 3.240% yield.
Logistics Operator Pulls IPO Plug
Brazil’s Vix Logistica has cancelled its IPO authorization, it says, confirming the market’s expectations after attempts to launch the sale in June and again at the end of last year did not move ahead. The transportation and fleet rental specialist cites “unfavorable” market conditions, and notes it will monitor them for a future attempt. It had planned to sell primary shares, as well as secondary shares owned by the controlling Aguia Branca group, in a deal that was expected to raise less than BRL500m ($245m). It was seeking capital mostly for organic growth, and also to acquire real estate and for working capital. Banco do Brasil, Bradesco, BTG Pactual, Credit Suisse and Itau were managing the sale.
CorpBanca Set for Follow-on
Chile’s CorpBanca is set price a follow-on in New York today, representing the international portion of a process expected to eventually top $600m-equivalent. The acquisitive Chilean bank is offering 12bn common shares internationally, represented by 8m ADS, which would raise $168m based on Monday’s $21.05 ADS closing price. The shares in the cross-border sale include 1.35bn secondary common shares to be sold by vice chairman Fernando Aguad. The international offer is to be followed by a Chilean rights offering that could bring the shares sold to the 47bn share limit, raising $660m in total. The controlling Saieh Group has waived its preemptive rights. Proceeds are to be used to help fund the $1.28bn purchase of Helm Bank in Colombia announced in October. BTG Pactual is managing the sale, with Celfin and CorpBanca as co-managers. At the time of the Helm announcement, the IFC agreed to buy 5% of the bank, a stake to be included in the upcoming rights offering and estimated at the time to be $225m.
Fibra Uno Aims to Top $1bn
Fibra Uno has launched an equity follow-on, aiming to price January 29 and raise more than $1bn. In its third trip to the markets, the Mexican real estate fund is offering 511m shares, including an overallotment option, according to regulatory documents. This would suggest a MXP18.68bn ($1.48bn) deal at Monday’s MXP36.55 closing price. Fibra Uno is looking for additional funds to grow its property portfolio. Credit Suisse and Santander are global coordinators, joined by bookrunners BBVA and Evercore. The first-ever real estate fund created under Mexico’s growing Fibra asset class raised $300m-equivalent in a 2011 IPO and added $700m in a follow-on last year.
US PE Shop Plans CCD
Acon Investments is preparing to raise private equity funds from Mexico’s pension funds through a certificado de capital de desarrollo (CCD) transaction. Currently raising $300m-$500m for its Acon Latin American opportunities Fund IV, the CCD would have a life of 10 years, extendible to 12, according to regulatory documents. The exact size to be raised from the CCD remains to be determined. Acon will target equity investments in Mexican companies. It expects to pay investors their principal plus an 8% preferred return, followed by the 80%-20% investor-manager split typical in private equity. ING is managing the process, for which the timing is unclear. Founded in 1996, Acon had $966m under management in LatAm through 3Q 2012. About 36% of its LatAm activity is in Mexico, the largest represented country in the region, followed by Brazil with 30%. The US-based global shop has offices in Mexico City and Sao Paulo. Last year, it made a BRL110m ($53m) investment in Brazil’s BSM Engenharia, a service provider to the country’s oil and infrastructure sectors, equal to about 40% of the company.