Chile’s CorpBanca is set to begin meeting investors Monday, ahead of the expected January 15 pricing of the international portion of an equity follow-on that should eventually top $600m-equivalent, according to sources familiar with the transaction. The acquisitive Chilean bank has registered to sell up to 12bn common shares internationally, represented by 8m ADS, which would raise $165m based on Wednesday’s $20.64 price. The shares in the cross-border sale include 1.35bn secondary shares sold by vice chairman Fernando Aguad. The international offer is to be followed by a Chilean rights offering that could bring the raise to the 47bn share limit, which would raise $640m 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. In late 2011, CorpBanca bought Santander’s Colombia operation for $1.16bn, which was followed by a $533m-euqivalent equity follow-on in June 2012.
Category: Equity
Plural Preps RE Fund of Funds
Brasil Plural is preparing a BRL200m ($98m) fund of funds investing in domestic real estate funds, according to regulatory documents. The Fundo de Investimento Imobiliario (FII) Brasil Plural Absoluto Fundo de Fundos will look to invest at least 90% in other FII funds and up to 10% in other real estate securities, such as Certificados de Recibiveis Imobiliarios (CRI) or Letras Hipotecarias (LH). The transaction could be upsized to as much as BRL270m. Plural is managing the placement itself. Issuance in the FII class is growing as more and more investors place bets on Brazilian property. Gavea Investimentos is preparing a similar BRL200m Fund of Funds, and BTG Pacutal opened a corporate office property fund to international investors in November – the first Brazilian real estate fund to do so – as part of a follow-on that could raise BRL2.0bn.
Estacio Sets FO Target
Brazil’s Estacio plans to price a $387m equity follow-on January 23, according to regulatory documents. The education company is offering 15.9m primary shares, as well as 3.1m secondary shares sold by Private Equity Partners. This would indicate a BRL793m ($387m) deal at Monday’s BRL41.72 closing price. A road show is scheduled to begin Friday. Estacio is raising funds for acquisitions and organic expansion, and has hired Bank of America Merrill Lynch, Credit Suisse and Itau for the transaction. Estacio held its IPO in 2007 and last visited the equity markets for a BRL685m all-secondary share follow-on in 2010.
Colombian Builder Prices Follow-on
Colombia’s Conconcreto has priced a COP243bn ($137m) equity follow-on, it says, arriving at a price near the bottom of the range it had suggested. The infrastructure specialist priced 180m shares at COP1,350 each, versus the COP1,347-COP1,446 range it had indicated at the opening of the subscription period in the first week of December. Conconcreto used a discretionary allocation process seen as a novel move for a Colombian follow-on. In contrast to the usual process of setting a fixed price and then taking orders, the infrastructure specialist indicated a fair value of COP1,643 per share, and noted that a 12%-18% discount would be appropriate. Conconcreto shares closed at COP1,350 on Monday. The sale represents about 20% of the company post-offering. The proceeds are to be used to fund infrastructure projects. Bancolombia managed the sale, with Bolsa y Renta and Exponencial joining it as structuring agents. Cemex Latam sued a similar discretionary allocation process in its November IPO. Conconcreto raised COP94.68bn in a December 2010 IPO.
Equity: New year’s revolution
The volume of equity capital market raisings for 2012 – standing at $23.78 billion towards the end of December – has fallen well short of the $34.65 billion for 2011 […]
Brazilian IT Provider Plans Share Sale
Brazil’s Senior Solution is planning to raise additional equity capital, according to regulatory documents. The Brazilian IT provider specializing in the financial industry plans to sell both primary and secondary shares. The size and timing remain unclear. Banco Votirantim is managing the sale, along with other banks to be added.