Mexican low-cost airline company ABC Aerolineas, or Interjet as it is known, has filed for an IPO, according to regulatory documents. It plans to sell primary and secondary shares in an offer in Mexico and overseas, it says, though does not indicate the timing or the size. The primary proceeds are marked 56% for “contingencies” and strategic investments, with 21% going to finance aircraft, 14% to improve facilities at airports, and the remainder for general purposes. The secondary sellers are members of the founding and controlling Aleman family. Founded in 2005, Interjet posted MXP527.0m ($45.2m) net earnings in 2010, and MXP85.7m ($7.3m) in 2009. It claims a 24.4% market share as of March 31, according to the prospectus, trailing Aeromexico’s 41.8%. JPMorgan is managing the sale, which would be the second IPO this year from an airline, following Aeromexico, and the second overall if it prices before BanRegio.
Category: Equity
Santander Rio Preps US Market Debut
Banco Santander Rio, the Spanish bank’s Argentine unit, has filed for an offer of ADRs in the US, it says. The bank plans to raise about $100m in the deal, according to local press reports, to raise funds to expand its branches, for acquisitions, and to expand its loan portfolio. It does not indicate the timing or the lead managers. Santander Rio preferred shares traded at ARP12.00 Thursday.
Airline Puts Off IPO
Brazil’s Webjet has cancelled its IPO registration, according to the CVM. It does not give a reason for postponing the all-primary share sale. The size of the offer had not been communicated. Bradesco, Citi and JPMorgan had been picked to manage the sale. The deal follows BrasilAgro, Desenvix Renovaveis and Karoon Petroleo e Gas in recently cancelled IPO or follow-on registrations, as issuers wait for better market conditions.
Cruz Blanca Readies IPO Launch
Chilean health services provider Cruz Blanca plans to begin marketing its IPO in LatAm, the US and UK starting next week. The company plans to price the transaction the week of June 20, according to a note from Celfin, one of the bookrunners on the deal. The sale of 122m primary and up to 100m secondary shares, expected to raise about $200m equivalent, has just been approved by Chilean regulators. The offer represents up to 35% of the company, according to the prospectus. The health insurance provider and operator of medical centers and clinics plans to use 65% of the funds raised for its investment plan. The plan consists of opening new locations for its Integramedica walk-in clinics, and opening and renovating locations under its three brands of medical centers, as well as unspecified growth through acquisitions and organic means. The other 35% would be used to repay debt. Bice, Celfin and IMTrust are managing the sale. The issuer, owned by Grupo Said and Linzor Capital, was founded in 1999, though the Cruz Blanca brand goes back to 2008 and of the company’s acquisition of health insurer Isapre ING. The health insurance operations represent 74% of Cruz Blanca’s business, according to the prospectus. Its total 2010 Ebitda was $31.2m equivalent. Cruz Blanca claims 20% of the market in Chile, covering 530,000 people, according to its website.
Marhnos CCD Funds Hospital
An MXP1bn hospital in Tlalnepantla, Mexico is the first health public private partnership to receive equity investment from pension funds, via the Marhnos CCD, says the IFC. The multilateral helped in the structuring and bidding. The contract to build the hospital was awarded to MARHNOS, a construction and development company. The hospital will take 18 months to build, after which time a contract for 23.5 years to operate the hospital will be put in place. Of the MXP1bn investment, $171m will come from venture capital, with $120m coming from the CCD and $51m from Marhnos. A further $866m will come from Banco de Bajio.
Nafinsa to Exit in Medica Sur Follow-On
Mexican hospital operator Medica Sur is planning a follow-on equity offering to raise funds for expansion and to allow government development bank Nacional Financiera (Nafinsa) to unload its 21% stake. The issuer does not give the size of the transaction’s primary portion, but says that Nafinsa will sell all of its 25.1m shares in a secondary portion, according to a prospectus. Nafinsa’s portion would be worth MXP638m at Wednesday’s MXP25.42 closing price, though the shares are extremely illiquid. Nafinsa has been a stakeholder since 1994, investing in order to help develop medical services, and has always planned on an eventual exit. Medica Sur plans to use proceeds from the primary sale to help fund its investment plan, most of which is dedicated to the expansion and refurbishment of its Tlalpan facility in Mexico City. Founded in 1982, Medica Sur operates hospitals and clinics and provides other health services including diagnostics, research and imaging in Mexico City, Monterrey, Cuernavaca and the state of Mexico. Ixe and BBVA Bancomer are managing the sale. The prospectus does not indicate the timing.
PetroReconcavo Joins IPO Pipeline
PetroReconcavo, a Brazilian E&P company with onshore wells in the state of Bahia, plans to go public, according to a preliminary prospectus. The issuer plans to include both primary and secondary shares, and has not given details as to the size or timing of the sale. US-based E&P operation PetroSantander, a 50% owner of PetroReconcavo, is listed as a selling shareholder in the secondary portion. Another 25% is held by Brazilian E&P company Perbras, a founder along with PetroSantander, and the remaining 25% is held by a PE fund owned by Brazil’s Banco Opportunity. Reconcavo is looking for funds to spend in new auctions for oil field concessions as well as possible acquisitions. BTG Pactual and Credit Suisse have been hired to manage the sale. With offshore deepwater oil production getting most of the attention in Brazil at the moment, Reconcavo claims to be the largest onshore E&P operator in Brazil, with 22.2m boe in proven reserves. Founded in 1999, it specializes in revitalizing existing wells to improve their production. In 2010 it had BRL65.0m ($40m) in Ebitda, and BRL56.9m ($34.9m) in 2009. Brazil’s smaller E&P operations have been turning to the Bovespa for funds, with Quieroz Galvao E&P raising a BRL1.52bn ($933m) IPO in February, and Perenco Brasil having also filed a preliminary prospectus.
Telemar Unveils Plan to Untangle
Brazil’s Telemar, operator of the Oi brand, announced plans to streamline seven share classes from three listed companies into one listed company. One of Brazil’s more complex share structures had been further complicated by the 2008 acquisition of Brasil Telecom, and the company has long hoped to simplify it. “The reorganization’s objective is to simplify in a definitive way the shareholder structure and the Oi companies, cutting operational and administrative costs and increasing liquidity for all shareholders,” the company says. Under the plan, the shares of Telemar Norte Leste (TMAR) are to be incorporated into unlisted Coari Participacoes, which will in turn be incorporated into Brasil Telecom (BRT). Telemar Norte Leste (TNL) will also be incorporated into BRT, which will then change its name to Oi, S.A. The Telemar Participacoes holdco would control Oi, holding the shares not held by the market, leaving Oi as the only traded entity. The company hopes to complete the operation within six months, it says.
BR Properties Plans Follow-on
BR Properties is planning to raise funds through an equity follow-on, it says. The commercial property developer and manager does not indicate the size or timing of the sale. It has hired Bradesco, Itau, Banco Safra and Santander as managers. BR Properties raised BRL1.07bn ($654m) in its IPO in March 2010, and followed that up with a $200m perpetual bond in October which it later retapped for $85m. CFO Pedro Daltro told LatinFinance in January that the company plans to grow through acquisitions in a sector it still sees as highly fragmented. BR Properties acquires, manages and develops offices, warehouses and retail centers in Sao Paulo, Rio de Janeiro and Parana states. BR Properties shares closed at BRL16.40 Monday.
Copersucar Plans IPO
Brazilian sugar and ethanol cooperative Copersucar is preparing an IPO, according to regulatory documents. The 48-member group does not specify a size for the offer, which will include both primary shares and secondary shares to be sold by 36 shareholders. Copersucar is seeking funds to shore up its capital structure ahead of planned investments – including BRL200m ($122m) to be spent upgrading its Santos port – and for working capital. Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs and Itau are managing the sale, for which the timing has not been determined. Copersucar handles sales, marketing, storage, distribution and other services for its member group of independent Brazilian sugar and ethanol producers, as well as non-exclusively for another 50 non-members, in the states of Sao Paulo, Parana, Goais and Minas Gerais. It recorded BRL407m in Ebitda during the fiscal year ended March 31, according to its prospectus.