Colombia’s Carvajal Empaques was seeing demand for its IPO topping a COP180bn ($98m) minimum and likely reaching a COP212bn target, according to sources following the transaction. The Carvajal group’s maker of containers and packaging materials offered 40m shares, or about 36% of itself, at COP5,300 each, in a sale period open through last week. The extended order period, customary in Colombia, left Carvajal vulnerable to changes in market sentiment caused by global equity selloffs on euro concerns as well as Colombian events including the bombing attempt against former Interior Minister Fernando Londono. The IFC has bought COP27.22bn, Carvajal says. It plans to use the proceeds to repay debt. Corredores Asociados is managing. Separately, a follow-on from steelmaker Acerias Paz del Rio is heard fully subscribed, following the close of its order period last week.
Category: Equity
Cencosud Files ADS Sale
Chile’s Cencosud plans to sell up to $718m in ADS in an equity follow-on, according to a regulatory filing. It does not give the timing of the sale, representing 132m common shares, to be led by Credit Suise, JPMorgan, Morgan Stanley, UBS, Santander and BBVA. The supermarket operator is raising funds to pay down debt, and fund the acquisition of Jumbo Retail Argentina, in addition to general corporate purposes. Each ADS would be worth 3 common shares, and initially referenced by ADRs. The move comes under a a $2bn total capital increase approved last year. Cencosud has operations in Chile, Colombia, Peru, Argentina and Brazil. Its common shares closed at CLP2799 ($5.49) Monday.
Pague Menos Readies IPO
Brazilian pharmacy chain Pague Menos has registered for an IPO, it says. It does not give the timing or size of the transaction, to be lead by Banco do Brasil, Credit Suisse, Itau and Santander. The sale includes both primary shares and secondary shares to be sold by members of the founding De Queiros family, and is expected to raise as much as BRL500m ($253m). The drugstore plans to spend 90% of the proceeds on opening new stores, and 10% to build distribution centers. The retailer founded in 1981 posted BRL232.2m in Ebitda in 2011, up from BRL144.5m in 2010. The company is also undergoing a BRL260m ($130m) local bond sale. A planned 2016 debenture pays the DI plus 1.19%. Proceeds are marked for working capital and improving the issuer’s debt profile. Banco do Brasil is managing the sale, done under the rule 476 restricted format.
Vinci Offers Boost to PDG
Brazilian private equity firm Vinci Partners has offered to raise up to BRL800m ($404m) for PDG Realty, PDG says, to help shore up the homebuilder’s balance sheet as it faces cost overruns, project delays and increasing debt levels. Under the proposal, Vinci would raise BRL800m through the sale of warrants entitling each holder to one new share and one convertible debenture, at BRL4.02 each. This represents an 11.4% premium to Friday’s closing share price, Vinci says. The shares closed at BRL3.78 Monday. The debentures acquired under the plan could be converted after 4 years into one additional new share at a minimum of BRL6.00 per share. Vinci would contribute between 54.8% and 81.4% of the fresh capital under the plan and refrain from trading the new shares it acquired for 2 years. The firm says the preemptive rights of existing shareholders to subscribe to the transaction would be respected. PDG’s net debt was BRL5.1bn at the end of March, versus BRL3.2bn a year earlier.
Brazilian Developer Preps Capital Raise
Joao Fortes Engenharia plans to raise BRL227.5m ($112m) through a share offering to existing holders, it says. The Brazilian residential developer will offer 35m shares at BRL6.50 each through June 22. Holders may buy up to 35% of the value of their holding. Shares closed at BRL8.19 Thursday.
Mexican to Leave NYSE
Mexican maritime logistics provider TMM has decided to delist its ADS from the New York Stock
Exchange, it says. The company’s financial results in recent years have been hurt by movements in the USD/MXP exchange rate, which along with slowing global growth have caused it to question the viability of the listing. TMM’s Q1 results did not reflect an average global market capitalization that met minimum standards. The ADS closed at $1.80 Thursday. Shares will continue to trade on Mexico City’s exchange.
Corpbanca Capital Raise Set to Top $300m
Chile’s Corpbanca has raised CLP97.71bn ($191m) through the sale of 15.63m shares to existing holders, it says. The amount is divided equally between the Santo Domingo family and the controlling Corp Group. Corp Group plans to subscribe additional shares equivalent to $148m within the next 12 days. The purchase is a part of a previously announced capital raise of up to 43m shares, or CLP269bn, to help fund the acquisition of Santander’s Colombian assets, agreed in December. The process is expected to be complete by the end of June.
Santander Mexico Begins IPO Manager Selection
Santander is heard to have named Deutsche Bank and UBS to manage the IPO of its Mexican unit, according to sources following the process, alongside Santander’s own ECM unit. Additional banks are expected to be added going forward. The transaction is expected this year, and seen raising more than $2bn to help shore up the Spanish parent’s balance sheet. Up to 25% of the bank could be floated. An official at the Mexican bank did not return a request for comment.
Jamaican Bank Readies NY Listing
Jamaica’s National Commercial Bank (NCB) is planning to raise about $250m through an equity follow-on, representing its debut listing in New York. The bank, which currently trades in Jamaica and Trinidad, is raising funds for general corporate purposes, including organic growth and possible acquisitions. It does not yet indicate the timing of the deal, or the exact number of ADS to be sold. Part of the offer consists of secondary shares to be sold by vehicles belonging to Michael Lee-Chin, who owns 64% of NCB. JPMorgan and Macquarie are managing the sale. NCB has 39% of Jamaica’s bank market by assets. Its Jamaican shares closed Tuesday at JAD23.58 ($0.27).
Brazilian Paper Producer Details Follow-on
Celulose Irani plans to sell both primary and secondary units in an upcoming equity follow-on, it says, hiring Itau and Credit Suisse to manage the sale. The maker of paper, packaging and resins is raising funds for its expansion plan, which involves increasing pulp and packaging material production capacity and obtaining the required infrastructure. Irani does not detail the amount of funds to be spent through 2015, but says additional bank loans, likely through BNDES will be necessary in addition to the equity sale. It previously communicated that it would sell additional units, each composed of 1 common and 4 preferred shares. The sale is seen almost as an IPO, given the relative illiquidity of the outstanding shares. It does not give an indication of size or timing. A launch this week, however, suggests a late June launch and July pricing, joining several other issuers looking to complete deals before the traditional July-August holiday period. Irani common shares closed at BRL1.41 ($0.69) Monday and preferred shares at BRL1.51.