Colombia’s Construcciones El Condor has launched its COP150bn-COP162bn ($85m-$91m) IPO, starting a sale period that will close March 27, with final allocations shortly after. The engineering and construction company is selling 106m shares at COP1,415 each. The sale represents an 18.75% float, which would reach 20% if a 9m overallotment is exercised. Bancolombia is managing the transaction.
Category: Equity
Posted inDaily Brief
CPFL Renewables Ponders IPO
CPFL is studying the possibility of an IPO for its CPFL Energias Renovaveis business, according to a person following the matter. There is not yet an indication of the size, timing or which banks might be involved. The company is said to seek funds for what it sees as a new phase of growth ahead in Brazil’s renewable energy sector. CPFL has 309MW in hydroelectric, wind and biomass generation in operation, plus another 1,518MW in development. Last month CPFL agreed to pay BRL1.062bn ($669.8m) for Bons Ventos, a company that owns 4 operating wind farms.
Posted inDaily Brief
Fibra Uno Targets $600m Retap
Mexico’s Fibra Uno is looking to raise more than MXP8bn ($615m) in a reopening of its domestic real estate income trust, known as a Fibra, and expects to price March 22, according to regulatory filings. The issuer has indicated it will sell 325m new shares, including a 48.75m overallotment, which would mean a MXP8.13bn deal at Tuesday’s MXP25.00 closing price. The sale would raise funds for Fibra Uno, the only Fibra launched since the creation of the asset class, to acquire new properties. The sale aims to raise substantially more than the MXP3.17bn IPO held last year. Santander and BBVA are global coordinators, with Credit Suisse also on an international 144a/RegS portion. Protego and Actinver are joining on a domestic portion. In January, Fibra Uno agreed with real estate investor MexFund to acquire up to 23 properties in exchange for shares in the Fibra, allowing the total portfolio to reach as many as 40 properties. Starting with 16 at the time of the IPO, Fibra Uno added a 17th last year, and counts on MXP3.6bn in revolvers to help fund acquisitions. Put together by a group of property owners led by CEO Andre El-Mann, the fund saw delays in getting the asset class’ debut off the ground in the IPO, with the issuer reducing the size and price and agreeing to put in its own equity. Its assets include industrial, commercial, office, and mixed-use properties located throughout Mexico.
Posted inDaily Brief
Petros Aims to Float Pulp Unit
Petros, the pension fund for Petrobras employees, is analyzing the possibility of an IPO for its Eldorado pulp and paper producer, a spokeswoman says. There were no additional details immediately available. The fund is also part owner of Investimentos e Participacoes em Infraestructura (Invepar), which has previously said it would look to IPO as well. Following the recent BRL16.21bn winning bid for Sao Paulo’s Guarulhos airport in partnership with South Africa’s ACSA, the spokeswoman confirms that an IPO is still in the planning stages. Bankers following the sale say no managers have been chosen and a sale would be at the end of 2012 at the soonest. Such a deal could raise BRL5bn ($2.84bn).
Posted inDaily Brief
Banco Galicia Eyes Card IPO
Argentina’s Banco Galicia is planning an IPO for its Tarjetas Regionales credit card subsidiary, it says. The bank has internally approved a sale of up to $200m in the foreign and domestic markets. The timing is unclear, as there are still several regulatory measures to go through. Bank of America Merrill Lynch, JPMorgan and Morgan Stanley have been advising on the process, a bank official says. Tarjetas Regionales is a holdco for brands including Tarjeta Naranja, Tarjeta Nevada and Tarjeta Mira, as well as a processor and collection company serving them.
Posted inDaily Brief
Colombian Builder Sets IPO Price
Colombia’s Construcciones El Condor plans to raise COP150bn-COP162bn ($85m-$91m) in its IPO, it says. The engineering and construction company has set a price of COP1,415 per share. As per Colombian regulations, the 2-week sale period will open once an official notice is published, as soon as today. The 106m shares to be sold represent an 18.75% float, which would reach 20% if a 9m overallotment is exercised. Bancolombia is managing the transaction.
Posted inDaily Brief
Ingevec Advances IPO
Chile’s Ingevec has approved the resumption of its IPO plans, which had been put off in August. The construction and engineering company plans to sell up to 270m shares, the same amount as last year. The issuer had been looking last year to raise at least $30m-equivalent to fund expansion projects, with LarrainVial hired to manage the deal. Separately, the company named Enrique Dibarrart as CEO of the Constructora Ingevec unit.
Posted inDaily Brief
Qualicorp Defines Selldown
Brazil’s Qualicorp is looking at a BRL856m ($495m) size on its planned all-secondary share equity follow-on, according to information in regulatory documents. The health insurer that made its Bovespa debut last year plans to sell 48.5m shares, which means raising BRL856m if done at Monday’s BRL15.34 share price and a 15% greenshoe is exercised. A 20% hot issue is also available. It still has not release a timeline. The two selling shareholders are a holding vehicle for private equity firm Carlyle and a vehicle owned by founder and board president Jose Seripieri Filho, both also sellers in the BRL731m secondary portion of last year’s IPO. Bank of America Merrill Lynch, Bradesco, Credit Suisse and Goldman Sachs are managing.
Posted inDaily Brief
Brazil PE Not Scared of Overinvestment
Private equity funds still see ample opportunity in Brazil despite the large amounts of money being deployed there. The vaguely defined “middle market” is still the sweet spot while new international firms have set up shop there amid expectations that valuations may be heading lower. Advent International’s Patrice Etlin estimates there is somewhere around $11bn in PE money available for Brazil at the moment. “Yes, it is a record number for Brazil. There has never been so much money and interest, but we are not in a situation like those found in other very hot emerging markets such as China, and it’s still far from the amount of capital committed in the US and other developed markets. If you compare it to the size of the broader Brazilian economy, it is still a relatively modest number,” Etlin tells LatinFinance. “There is a lot of opportunity in the $25m-$50m ticket space,” says Chris Bruneau, executive director at 57 Stars, an EM-focused fund of funds. “There are five to seven groups trying to raise money in that space. Even if they raise all of the money they hope to, there is going to be a pretty open market for PE in Brazil. There are a lot of opportunities.” Valuations have moved up in general, but this has occurred more at the top end of the market, Bruneau explains. However the slowdown in Brazil over the last three to six months has raised expectations that valuations should come down a bit. “We are moving toward a period of price adjustment and we expect to see the value reduction we’ve seen in the public markets migrate to private transactions. It hasn’t happened yet, so as a result we are currently seeing much less investment activity in private deals,” Etlin says. Meanwhile, Marcelo di Lorenzo, head of 3i Brazil, sees the middle market also having to accept lower valuations despite expectations to the contrary. ““In the middle market, the expectations could go up, but it is not as strong as in the higher-ticket deals. The companies soon realize that they
Posted inDaily Brief
LatAm Equity Flows Reverse
EM equity funds saw inflows of $1.03bn during the week ending February 29, despite LatAm equity fund outflows subtracting $89m from the total, according to EPFR. LatAm funds saw a 1.69% return during the week ending March 1, and are up 20.00% on the year, according to Lipper. EM funds gained 1.78% during the week and have risen 16.99% on the year. Global small and mid-cap funds, by comparison, are up 0.15% on the week, and 14.29% on the year.