Corpbanca has auctioned off CLP135.2bn ($290m) in new shares in a follow-on Friday at CLP7.35 a share. The deal, led by Celfin and Corpbanca, is the first of three preferential offerings. The second round is set to conclude August 1.
Category: Equity
Posted inDaily Brief
InterBolsa Completes Share Buyback
Colombian financial conglomerate InterBolsa completed a COP19.4bn ($11m) share buyback last week, acquiring 6.3m shares for COP3092.14 each. After the transaction, InterBolsa will have 198.6m shares outstanding.
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LatAm Equity Funds See Outflows
LatAm equity funds saw $85m in outflows for the week ended June 29, according to EPFR Global. EM equity funds, meanwhile, had $2.47bn in inflows for the week, though that number consisted primarily of two large Taiwan ETFs that took in almost $2bn. Performance was positive for the period, as EM funds rose 3.62% for the week ended June 30, but remain down 0.37% ytd, according to Lipper. LatAm funds also climbed by 3.78% for the week, while still remaining lower by 2.26% ytd. Global small and mid-cap funds jumped 3.57% for the week, and are up 3.97% ytd.
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Perenco Postpones Brazil IPO
Brazil’s Perenco e Gas do Brasil Participacoes postponed its IPO Friday, becoming the third LatAm issuer to pull a deal in what was a brutal week for the region’s equity markets. The Brazilian unit of UK-based oil exploration company Perenco, which cited market conditions for the decision not to move forward, had planned to sell 0.4m primary shares at BRL1,550-BRL2,000. That would have meant a BRL829m ($533m) sale if it had come at the BRL1,775 midpoint and a 15% greenshoe had been included. Investors cited the company’s dearth of producing assets as one of the main reasons why they lost interest in the offering. A busy week for equities, with follow-ons from Mahle, Kroton and BR Properties, had created a buyers’ market for LatAm investors, who were able to call the shots on pricing, an investor says. Mexican low-cost airline Interjet and Brazilian sugar and ethanol cooperative Copersucar also announced last week that they would be pulling or postponing their offerings after seeing Qualicorp miss the bottom of its IPO range by almost 19%, and Technos scraped the bottom of its pricing targets. Perenco, which operates in 16 countries worldwide, had planned to use the funds to develop its 5 blocks in the Espirito Santo Basin and acquire additional blocks. About a third of the raise was slated for acquisitions, including new government auctions. BTG, Itau and Morgan Stanley were leads.
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Posadas Sees Buyout Interest
Mexican hotel group Posadas is reviewing buyout proposals as it seeks to raise $50m in a stock offering during 3Q11 and a possible capital increase of $100m-150m, Scotia Capital says. Posadas stockholders’ do not intend to relinquish control the group, and the bonds were still trading last week at 2-3 points below the change of control put price of 101.00. Rothschild Bank has been mandated to find new investors for the company’s $50m stock offering and capital increase. Posadas was heard planning to sell bonds as part of a liability management exercise, according to sources familiar with the company’s plans. Specifically, the hotel operator is looking to address a 2013 domestic maturity totaling MXP2.25bn ($194m). Posadas is rated B3/B+, following downgrades by Moody’s and Fitch in November and December. It last visited the markets in January 2010, selling $200m in 2015 bonds at a 9.5% yield, through JPMorgan.
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Copersucar Sets IPO Date
Copersucar expects to price a BRL2bn IPO July 19. The Brazilian sugar and ethanol cooperative plans to offer 86.5 primary and 21.6m secondary shares at a range between BRL14.50 and BRL18.50. Copersucar is seeking funds to shore up its capital structure ahead of planned investments, including BRL200m to be spent in upgrading its Santos port. BAML, Credit Suisse, Goldman Sachs and Itau are leads. Copersucar handles sales, marketing, storage, distribution and other services for its member group of independent Brazilian sugar ethanol producers.
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Interjet Delays IPO
ABC Aerolineas, the holding company for Mexican budget airline Interject, has indefinitely delayed its IPO after citing market conditions. No time has been given for a possible return to market. Buyside sources say that the company received little interest from international investors, with only local accounts responding positively. The company had been looking to price 98.8m primary shares and 42.3m secondary shares at a range of MXP21 to MXP25 for a potential size of MXP3.2bn if priced at the mid range. Proceeds from the primary portion were earmarked for contingencies, strategic investments, aircraft acquisitions and facility improvements. The founding and controlling Aleman family had been the selling shareholder. JPMorgan was lead.
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Mahle Ties up Equity Follow On
Brazil’s Mahle Metal Leve sold 7.5m shares held by German parent Mahle Industriebeteiligunge in a secondary offering. The BRL41 price represented a 4.7% discount to the manufacturer’s closing level Thursday of BRL43. The BRL309m follow on increased the free float to 30%, up from 12.35% before the offering. The manufacturer of parts for cars, trucks and tractors is selling shares as part of a plan to migrate to the Novo Mercado section of the Bovespa. Banco Fator, Itau,and Deutsche Bank led.
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Perenco Set to IPO Today
Brazil’s Perenco e Gas do Brasil Participacoes is set to price an IPO today which could raise as much as $529m. The Braziian unit of UK based oil exploration company Perenco plans to sell 0.4m primary shares at the BRL1,550 to BRL2,000 range. This would mean a BRL829m sale if done at the BRL1,775 midpoint and a 15% greenshoes were included. A 20% hot issue is also available. Perenco, which operates in 16 countries worldwide, is seeking funds to develop its 5 blocks in the Espirito Santo Basin and acquire additional blocks. About a third of the raise will go to acquisitions, including new government auctions. BTG, Itau and Morgan Stanley are leads.
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Vale Board Approves Buyback
Vale’s board has approved a proposal for an up to $3bn share buyback with the aim of maximizing shareholder value. The Brazilian mining company aims to purchase up to 84,814,902 common shares and 102,231,122 preferred shares, or 5.9% of the free float. The program will be open for a 180 day period sometime between now and November 25.