Brazil’s Mahle-Metal Leve has set a June 30 pricing date for a secondary offering of shares owned by German parent Mahle Industriebeteiligungen, targeting a BRL350m plus size. It plans to sell 6.56m shares, increasing the free float to as much as 30.00% from the current 12.35%. Such a deal would raise BRL366m at Wednesday’s BRL48.50 closing price if the 15% greenshoe is included. The manufacturer of parts for cars, trucks and tractors began a road show Wednesday, and is upping its public float as part of a plan to migrate to the Novo Mercado section of the Bovespa. Banco Fator, Itau and Deutsche Bank are managing the sale. The Brazilian pipeline is looking quite heavy for late June, leading off with Brazil Pharma’s IPO on June 22, Also on the agenda are IPOs from Qualicorp and Technos as well as follow-ons from BR Properties, Energias do Brasil and Kroton the following week.
Category: Equity
Santander Rio Looks for June Launch
Argentina’s Santander Rio would ideally like to price its sale of ADRs by the end of the month and is eyeing a size of up to $1bn, according to investors following the deal. However, no firm details on timing or size have been set thus far. Market volatility, concern about the Argentina situation ahead of the October presidential elections and the hit-or-miss nature of equity sales in the region this year all mean the deal could be pushed back, investors add. The bank is heard seeking 10-11x earnings. Bankers managing the deal decline to comment on the details of the transaction. The bank is looking to raise funds to expand its branches, for acquisitions, and to increase its loan portfolio. Bank of America Merrill Lynch, JPMorgan and Santander are managing the sale. Santander Rio preferred shares closed at ARP11.90 Thursday.
Vapores Starts Equity Road Show
Chile’s Compania Sudamericana de Vapores (CSAV) has started investor meetings for a $500m share subscription open to existing holders. It plans to sell up to 834.7m shares at CLP285 each. If all shares are sold, this would raise a total of CLP237.89bn ($508m). The shipping company is offering holders 0.411325 shares for each existing share during a period expiring June 30. Chile’s Grupo Luksic, which brought its stake in CSAV to 20% in April, plans to subscribe all of its rights and will pick up any rights not subscribed by current holders, according to a report by bookrunner Celfin. Proceeds will be used to help Vapores to acquire cargo ships and for working capital. Shares closed at CLP291Monday, implying a 2.1% discount for the rights offering price.
Bovespa Approaches BVC for Tie-up
The Colombian stock exchange (BVC) announced Friday that it had received interest from Brazil’s Bovespa regarding a potential integration of the two exchanges. Trading began on May 31 on the MILA, formed after Colombia, Peru and Chile merged their exchanges to become the second-largest in the region, behind the Bovespa. “The recent integration initiatives throughout the region have generated positive expectations and interest related to market development capital,” the BVC says in a statement. The stock exchange adds that BVC would be willing to consider a potential integration.
LatAm Equity Inflows Continue
LatAm equity funds took in $26m for the week ended June 8, according to EPFR Global. EM equity funds, meanwhile, had $220m in outflows. Peru equity funds proved to be the biggest driver for LatAm funds, taking in $62m as investors saw buying opportunities following Ollanta Humala’s June 5 presidential election. Brazil equity funds also took in $41m. Performance was negative, as EM funds fell 1.07% for the week ended June 9, and are down 0.61% ytd, according to Lipper. LatAm funds were down 1.55% for the week, and remain down 3.10% ytd. Meanwhile, global small and mid-cap funds fell 1.90% for that period, but are up 2.19% ytd.
Security Prices $200m Equity Raise
Chile’s Grupo Security has priced a CLP36.22bn ($77.5m) public follow-on, part of a CLP90.00bn ($192m) capital increase through the issuance of new shares. The financial group priced the 181.1m public shares at CLP200 each, representing a 4.3% discount to Thursday’s CLP209 close. Including the participation of existing holders, the company will issue 450m shares total. Security is raising funds for growth at its various units. The group’s main operation is Banco Security, though it also has operations in insurance, investments and asset management. IMTrust and Security’s brokerage unit managed the sale. Shares closed at CLP WHAT Friday. Chile’s equity market has been active this year, with fishery Australis Seafoods raising $71m equivalent last week, and Aguas Andinas set for a follow-on Wednesday and Cruz Blanca to IPO the following week.
Australis IPO Tops $70m, Trades Up
Chilean fishing company Australis Seafoods priced a CLP33.3bn ($71m) IPO near the middle of the market’s expectations, and rose 1.3% in its first day of trading. The salmon and trout exporter sold 180m shares at CLP185 each, with analyst expectations having centered around CLP175-CLP190. The company also made 7m shares available to employees. Demand topped CLP353bn from 711 accounts, Australis says. Local institutions and pension funds made up 46.9%, local retail investors 20.6%, local non-institutions 14.6%, and foreign accounts 3.3%. The sale represents a 13% float, and raises funds to improve production, with the company planning to spend $274m through 2015. The company was generally seen as inexpensive compared to listed peers, with analysts seeing less than 10x EV/Ebitda versus 10x-15x for competitors. The company, established in 2007 to consolidate the various fish businesses of Chilean businessman Isodoro Quiroga, consists of three branches: Australis Mar, which raises and harvests salmon and trout, Landcatch, which produces salmon eggs and smolts, and 50% of True Nature Holdings, a US salmon products distributor acquired this year. LarrainVial managed the sale. Shares closed Thursday at CLP187.43. As Chile’s fisheries make a comeback from a 2008-2009 fish disease that decimated the industry, several are choosing the bolsa to raise funds to increase production. AquaChile raised $374m equivalent in its IPO last month, following Camanchaca’s $225m equivalent in November, and Cultivos Marinos Chiloe expected this year. On the whole, the Chilean new issuance market is becoming one of the region’s more active, with a follow-on from Security today and Aguas Andinas next week, as well as the IPO of Cruz Blanca the following week.
Brazilian Watchmaker Launches IPO
Brazilian watchmaker and distributor Technos has launched its IPO as it looks to raise more than BRL500m ($313m). Pricing is scheduled for June 28. The issuer plans to sell 24.32m shares at BRL16.50-BRL20.50 each, indicating a BRL517m transaction if done at the BRL18.50 midpoint and a 15% greenshoe is exercised. A 20% hot issue is also available. The base deal consists of 10.95m primary shares and 13.38m secondary shares to be sold by its controlling group, which includes PE firm DLJ (40%) and Brazilian asset manager Dynamo (32%). The transaction should result in a 37% float assuming the greenshoe is used, according to the prospectus. Technos plans to use 40% of the proceeds for expansion and acquisitions, 49% to acquire shares of its SD subsidiary and 11% to repay debt. Credit Suisse, Goldman Sachs and Itau are managing the deal. Technos was founded in 1956, and recorded BRL59.1m in Ebitda in 2010, up from BRL45.1m in 2009, it says.
Chile’s Security Set for Follow-On
Grupo Security is scheduled to announce the price of an equity follow-on this morning that could raise $200m equivalent. The financial company was to close books yesterday in the sale of 450m primary shares, which would raise CLP94.05bn ($202m) at Thursday’s CLP209 closing price. Security is raising funds for growth at its various units. Security’s main operation is Banco Security, and it also has operations in insurance, investments and asset management. IMTrust and Security’s brokerage unit are managing the sale.
Chilean Builder Readies IPO
Ingevec has made its initial registration for an IPO, according to a banker managing the process, adding to the growing list of issuers from Chile this year. The construction company’s roadshow should start within the next month, the banker says, though other details about the exact size and timing of the transaction are yet to be determined. The float would be up to 30%. LarrainVial is managing. The construction, engineering and real estate company is raising funds for its expansion plan over the next few years, according to remarks from company officials in the Chilean press. Ingevec has a project portfolio of more than $300m, according to local press reports, and has diversified in recent years into areas including properties and producing modular bathrooms and kitchens.