Mexichem is scheduled to price today an equity offering of more than $1bn, becoming the latest Mexican issuer to take advantage of investor appetite for the country. The industrial conglomerate is offering 260m shares, assuming a 15% greenshoe is used, in an all-primary share sale that would raise MXP15.74bn ($1.23bn) at Monday’s MXP60.53 closing price. Mexichem is raising funds for general corporate purposes, including expansion projects and working capital. Citi, HSBC, JPMorgan and Morgan Stanley are managing the international portion of the transaction, joined by BBVA on the Mexican portion. The sale follows a $1.15bn well-demanded international bond sale last month, as Mexichem continues to raise funds following the $500m acquisition of Dutch pipemaker Wavin.
Category: Equity
IFC Takes Corpbanca Stake
The IFC continues its investments in expanding LatAm financial groups, agreeing to spend $225m on an about 5% stake in Chile’s Corpbanca, according to a spokeswoman. The IFC expects to complete the buy by the end of the year or early 2013. The investment should help Corpbanca grow in Latin America, particularly in its service to small and medium enterprises, it says. Mexico, Peru and Brazil are among the countries of interest to Corpbanca in terms of expanding its reach. The IFC has made other equity investments in LatAm financial groups with cross-border expansion plans. It took a $200m position in Colombia’s Suramericana last year to aid with the groups purchase of ING pension assets, and also has a position in Davivienda. CorpBanca bought the Santander unit in Colombia for $1.16bn earlier this year.
Pinfra Parks Equity Sale at Discount
Mexico’s Promotora y Operadora de Infraestructura (Pinfra) has priced a MXP4.43bn ($349m) equity follow-on, coming at an 8.5% discount. The Mexican concession operator priced 70.4m shares, including the assumption of a 15% greenshoe, at MXP63.00 each, it says, versus Thursday’s MXP68.85 closing price. The shares closed down 2.21% at MXP67.33 Friday, on a day when the Bolsa gained 1.24%. Pinfra’s order book was 2x covered, according to bankers on the sale, with the main investor groups including LatAm-dedicated investors, global infrastructure investors and Mexico’s pension funds. About 51% of the sale went to international buyers, according to regulatory documents, up from the 42% expected pre-sale. About 70% of the shares sold in the deal were secondary shares held by members of the Penaloza family and various investment funds. The public float was to increase to 46.1% from 29.5%, with controlling shareholders ending up with a 44.5% stake and funds linked to Grupo Bursatil Mexicano 9.4%. Proceeds from the primary portion are going toward general corporate purposes, including greenfield and brownfield construction. The sale also aimed to increase the liquidity of the issuer’s shares. Pinfra operates 13 road concessions, edging out ICA’s 12 to be the leader in Mexico, which account for 85% of revenue. Pinfra and the buyers in follow-on are betting it can win more greenfield and brownfield projects. It is difficult to define their chances before the new presidential administration enters, analysts say, but there is some degree of optimism given president-elect Pena Nieto’s track record while governor of the state of Mexico. Credit Suisse and JPMorgan managed the international portion, joined by Banorte-Ixe on the domestic side. Pinfra had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road constructio
CPFL Renewables Pulls IPO Plug
Brazil’s CPFL has officially cancelled registration for the IPO of its CPFL Energias Renovaveis unit, it says, confirming what the markets had long expected. It had planned to raise around BRL1bn ($495m) through the offer of primary shares, as well as secondary shares owned by several investment funds, including those linked to Patria Investimentos and Bradesco. The generator was looking to raise funds for projects. Bank of America Merrill Lynch and Itau were global coordinators, with Morgan Stanley, Bradesco and Banco do Brasil as bookrunners. The deal joins a long list of Brazilians putting plans on hold due to challenging market conditions. Drugstore Pague Menos and car retailer AutoBrasil were heard considering a second attempt this month, through their status is uncertain.
Market Awaits Pinfra FO
Mexico’s Promotora y Operadora de Infraestructura (Pinfra) had yet to price an equity follow-on late Thursday evening. The Mexican concession operator was scheduled to price 70.4m shares, including a 15% greenshoe, implying a MXP4.85bn ($380m) sale based on Thursday’s MXP68.85 closing price. The books were heard to be oversubscribed. Some 42% of the sale is destined for an international tranche. About 70% of the shares are to be secondary shares sold by members of the Penaloza family and various investment funds, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The sale also aims to increase the liquidity of the issuer’s shares, which trade relatively infrequently. The public float is to increase to 46.1% from 29.5%, with controlling shareholders ending up with 44.5% and funds linked to Grupo Bursatil Mexicano 9.4%. Credit Suisse and JPMorgan are managing the international portion, joined by Banorte-Ixe on the domestic side. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road construction and has been publicly traded since 2005. Mexico is emerging as the region’s equity hotspot following Santander Mexico’s $4bn IPO, with Mexichem scheduled for a $1.2bn-equivalent follow-on October 9 and Credito Real with a $200m-equivalent IPO October 16.
Marti Controller Launches Buyout Offer
Alfredo Harp, the controller of Mexican retailer Grupo Marti, has launched an offer open through October 22 to purchase up to MXP1.58bn ($123m) in shares he does not own in the company, according to regulatory documents. The offer covers up to 133.9m shares, or 17.46% of the company, at a price of MXP11.80 each. The timing of the offer remains to be set. Banamex is managing. Marti shares were at MXP11.00 Thursday.
Rossi Close to Renegotiation, Capital Raise
Rossi Residencial is close to finalizing the renegotiation of covenants with Brazilian Securities for one of its domestic debt issuances, it says, and expects to finalize an equity capital raise in “the next few days.” Following adjusted covenants agreed with Bradesco, Caixa Economica Federal and BTG Pactual, the Brazilian developer is reworking those on bonds sold entirely to Brazilian Securities in order to back a sale of Certificados de Recebiveis Imobiliarios (CRI). Rossi is also preparing a private share subscription that could raise as much as BRL500m ($245m), closing this quarter.
La Polar Offer Tops $240m
Chile’s La Polar has raised CLP115.72bn ($244m) at the close of the primary phase of an equity capital raise Tuesday, it says. The retailer has sold 665m shares, with pricing set as the average price of the three days prior to the buyer’s subscription minus a 5% discount. This meant the shares were offered at CLP198.14 each during Tuesday’s final session. The shares closed at CLP220.17 in the market Wednesday. The retailer will offer the 85m remaining unsubscribed shares during a 7-day period beginning Friday. The offer raises funds to remodel stores in Chile and to expand in Colombia, and is done as part of a $900m restructuring agreement with creditors. The retailer set aside nearly $1bn-equivalent in loan loss provisions last year amid accusations of fraud after the company arbitrarily overcharged its credit clients. Celfin is managing the capital raise, and Lazard is the advisor on the restructuring.
Peruvian Prices Retail IPO
Intercorp’s InRetail Peru unit has priced a $460m IPO, with the oversubscribed deal landing just below the midpoint. The sale is Peru’s largest new equity issue in six years and offers equity investors their first real crack at the consumer demand side of one of LatAm’s fastest-growing economies. The unit holding Intercorp’s retail assets including InkaFarma drugstores and Plaza Vea supermarkets priced 23m shares, assuming the exercise of a 15% greenshoe, at $20.00 each, the company says, versus a $19.00-$22.00 range. The base deal represents a 20% float. Investor concerns about size, liquidity, and use of proceeds mostly for greenfield were outweighed by the issuer’s being part of one of Peru’s strongest corporate group’s and operating in a very attractive industry. “It is difficult to find a such a scalable play on Peru,” says an EM equity portfolio manager looking at the transaction. Investors reported using regional consumer stocks including Cencosud, BR Malls and the Intercorp parent as starting points for the pricing. The transaction was made up entirely of a 144A/RegS sale, a change from the original plan to include a tranche representing up to 5% of the offer for domestic investors in Peru. InRetail is raising funds for expansion in areas including supermarkets, pharmacies and commercial centers. BTG Pactual, Citi, JPMorgan and Morgan Stanley managed the transaction. It is Peru’s largest equity sale since Hochschild Mining’s $577m 2006 IPO, according to Dealogic data, and the second Peruvian IPO this year following Andino Investment’s $43m debut.
Pinfra Set for FO
Promotora y Operadora de Infraestructura (Pinfra) is scheduled to price an equity follow-on today and was heard late Wednesday with books covered. The Mexican infrastructure firm is selling 70.4m shares, including a 15% greenshoe, suggesting a MXP4.89bn ($381m) sale at Wednesday’s MXP69.51 closing price. About 70% of the shares are secondary shares to be sold by members of the Penaloza family and various investment funds, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The sale also aims to increase the liquidity of the issuer’s shares, which trade relatively infrequently. Pinfra had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. Credit Suisse and JPMorgan are managing the international portion, and are joined by Banorte-Ixe on the domestic side. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road construction. The sale is to be the first in a series of Mexican equity offerings following Santander Mexico’s $4bn IPO, with Mexichem scheduled for a $1.2bn-equivalent follow-on October 9 and Credito Real with a $200m-equivalent IPO October 16.