Category: Equity

Promotora y Operadora de Infraestructura (Pinfra) is holding investor meetings as it looks to resume the process for an equity follow-on, according to investors. The Mexican infrastructure firm had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. The exact timing of the launch remains to be set, though the deal – along with the others in Mexico’s pipeline – is expected to wait until Santander Mexico’s $4bn-plus IPO is out of the way. Pinfra is expected to raise in the neighborhood of $300m-equivalent, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The deal will also include secondary shares sold by members of the Penaloza family and various investment funds. JPMorgan, Credit Suisse, and Ixe are managing. Pinfra shares closed Tuesday at MXP72.22 ($5.56).

Grupo Bursatil Mexicano (GBM) has closed on a MXP750m ($57m) certificado de capital de desarrollo (CCD) transaction, representing the first close of a fund targeting MXP3.75bn, it says. The remaining 80% is to be funded through capital calls. The brokerage operator and fund manager’s 10-year deal will target investment in communications, water, transportation, oil, power and renewable energy projects. Investors are to receive their initial investment plus up to a 10% preferred return, with additional proceeds being divided 80% to investors and 20% to GBM. GBM has a track record of private infrastructure investments in Mexican companies including Grupo Mexico, TMM and Pinfra, and counts former SCT undersecretary Manuel Rodriguez as the general manager of the fund. GBM’s brokerage unit managed the sale.

Santander Mexico has launched its IPO, aiming to raise MXP49.01bn-MXP56.61bn ($3.72bn-$4.30bn), in a sale valuing the bank at more than $17bn, it says. The Mexican unit seen as one of the crown jewels of the troubled Spanish bank has set September 25 for the pricing of 1.69bn shares, including a 15% greenshoe, at MXP29.00-MXP33.50 each. The deal is divided into an international tranche of up to 1.18bn shares in the form of ADRs, representing 80% of the total transaction, and a Mexican portion made up of 294m shares. At the maximum, Santander would float 24.9% of Santander Mexico. Bankers away from and on the deal say the region’s near-term ECM hopes have a lot riding on the deal’s success, in that a well-bid sale pricing at the midpoint or higher followed by strong aftermarket performance could restore issuers’ and investors’ confidence in LatAm deals. Proceeds from the sale, set to be Mexico’s largest-ever IPO, will be used for general corporate purposes. Santander, UBS, Deutsche Bank and Bank of America Merrill Lynch are global coordinators. Itau has been added to the joint bookrunner tier since the initial filing, joining Barclays, Citi, Credit Suisse, Goldman Sachs, JPMorgan and RBC. Santander, Banamex, BBVA Bancomer and HSBC are on the domestic portion. In Mexico, Mexichem is set to follow with an up to $1bn-equivalent October follow-on, via Banamex, HSBC, JPMorgan and Morgan Stanley. Cemex is also in the pipeline with an IPO of its ex-Mexico LatAm businesses in Colombia, for perhaps $750m-$1bn. In Brazil, used car dealer AutoBrasil plans to try its luck in the IPO market.