Vulcabras, a Brazilian maker of shoes and sporting goods, has cancelled its registration for a follow-on equity offer, according to the CVM. The owner of brands including Olympikus, Azaleia and Dijean was looking to raise funds for capex and possible acquisitions, and had filed for the transaction in December. It does not indicate the size or timing of the sale, to be composed entirely of primary shares. BTG Pactual was managing. Vulcabras’ preferred shares closed at BRL18.00 Monday. Despite would-be issuers continuing to pile into the Brazilian new issuance pipeline, dropouts have also been increasing. The other resent deals to be pulled – Desenvix and BrasilAgro – were in sectors where deals have seen more difficulty than those more directly tied to consumer discretionary spending. Fellow shoemaker Arezzo, for example, was one of Brazil’s more successful IPOs this year, pricing at the top of its range and trading up to BRL24.80 Monday from a BRL19.00 pricing in January.
Category: Equity
Desenvix Pulls IPO Shelf
Desenvix Energias Renovaveis has withdrawn its IPO filing, according to the CVM. The Brazilian renewable power generation developer and operator had filed in October and was one of about 10 issuers awaiting launch in what has been a tricky year for new deals. Desenvix had not given an indication of the size of the primary and secondary sale. BTG, JPMorgan and Santander were hired as managers. Desenvix was seeking funding for a 2011-2015 project pipeline. As of September 30, it had 47 projects throughout Brazil totaling 3.2 gigawatts of generation capacity, mostly in the small hydroelectric space. Desenvix is controlled by Jackson Emprendimentos, a holdco for Desenvix and sister units Engevix, an engineering contractor, and Econvix, a builder of offshore oil and gas installations. Pension fund FUNCEF also holds a 25% stake in the company.
Bradesco Wins Berj Bid
Banco Bradesco won the bidding for Banco do Estado do Rio de Janeiro (Berj) with an offer of BRL1.025bn, according to an announcement on the BMFBovespa website. Bradesco beat out a BRL729m bid by Votorantim, a BRL650m bid from Santander, and a BRL 590m bid from Itau to take the Rio de Janeiro lender. Bradesco declined to disclose financial information about the target.
Corpbanca Holders Raise Block Trade
Grupo Saieh, which controls Corpbanca, has sold 14.4bn shares in Corpbanca, raising about $225m equivalent, coordinator Celfin says. The block representing a 6.34% stake priced at CLP7.35, the floor set in the sale, to raise CLP 105.8bn ($226m). The price matched Thursday’s closing levels. Shares closed Friday at CLP7.45. Celfin managed the sale. Separately, Corpbanca is moving ahead with the 25.5m share capital raise it approved in January, according to local press reports.
LatAm Equity Outflows Continue
LatAm equity funds saw $36m in outflows for the week ended May 18, according to EPFR Global. EM funds saw $1.6bn in outflows during the week. Performance was also negative, as EM funds were down 0.6% for the week ended May 19, and 0.73%% ytd, according to Lipper. LatAm funds dropped 1.29% for the week, and were down 5.04% ytd. Meanwhile, global small and mid-cap funds were down 0.94% for that period, but are up 4.72% ytd.
AquaChile Prices $374m IPO
AquaChile has priced a CLP175.3bn ($374m) IPO, landing Chile’s second IPO of 2011 at the lower end of the market’s expectations. The salmon farmer priced 387m shares at CLP453, it says. Market expectations had centered around a price of CLP460-CLP480 per share, which analysts saw as a 15% discount to the fair value. Shares rose 5.0% in the first day of trading to CLP475.65. Demand from orders coming in above a CLP418 floor reached CLP1.25bn from 2,151 accounts, the issuer says. Domestic pensions accounted for 10% of the book, with domestic non-pension institutions accounting for 22.5%. Retail, other domestic investors and international investors bought 20% each, with people affiliated with the company buying 7.5%. The fishery controlled by the Puchi family is raising funds to boost production back to levels from before a virus decimated fishing stock in 2008-2009, aiming for 173,000 tons per year by 2016. Proceeds from the IPO will go to this $470m expansion plan. Analysts expect a favorable growth scenario. Banchile and IMTrust managed the sale, which follows pharmacy Recalcine raising CLP172.72bn earlier this month. Fellow fishery Camanchaca brought the only Chilean IPO of 2010, raising CLP109.1bn.
AquaChile Set for IPO
AquaChile is expected to announce the pricing for its IPO today, targeting $350m-$400m equivalent. The Chilean fishery hopes to sell 387m shares, according to regulatory documents, about a 36% float. Analysts’ pricing expectations center in the range of CLP460-CLP480, which would mean a CLP178.0bn-CLP185.8bn ($380m-$396m) deal. BCI estimates a fair value of CLP583 per share, it says, and recommends paying no more than CLP476, representing a 15% discount. The country’s largest salmon company offers industry leadership, vertical integration, and product and client diversification, it says. Fellow brokerage Security spots fair value at CLP528, with a 12-month target of CLP574, and recommends buying at CLP475. “We see the company facing a positive growth scenario, even though it remains subject to ongoing risks and a more strict regulation, which could impact results,” Security says. Celfin sees fair value at CLP510, and recommends subscribing up to CLP465. Chile’s fish industry suffered a disease crisis in 2007-2009 and is now emerging from the crisis with stronger regulations in place that should strengthen the industry and prevent a reoccurrence, Celfin notes. AquaChile is raising funds to fuel its $470m plan to re-grow production to 173,000 tons per year by 2016. Banchile and IMTrust are managing the sale, to be the second IPO in Chile of 2011, with pharmacy Recalcine raising CLP172.72bn earlier this month. Fellow fishery Camanchaca brought the only Chilean IPO of 2010, raising CLP109.1bn.
BrasilAgro Puts off FO
BrasilAgro has decided to postpone an equity follow-on, according to a banker on the deal. The agricultural property developer had filed for the sale in January, seeking funds to acquire and develop additional farmland. It had not given an indication of the size. Bank of America Merrill Lynch, BTG Pactual and JPMorgan were managing. BrasilAgro raised $276m equivalent in a 2006 IPO. Its shares closed at BRL10.65 Tuesday.
Industrial Park Specialist Plans CCD
Mexico’s Finsa has registered for an MXP2.75bn certificado de capital de desarrollo (CCD) transaction, according to a prospectus. The industrial real estate specialist plans to create a fund develops and acquires a variety of industrial real estate assets throughout Mexico. The return structure is similar to other CCDs: investors would get their principal back plus a 9% preferred return, with the remainder going 80% to investors and 20% to Finsa. Real estate-focused US PE firm Walton Street Capital will co-invest approximately $28m. Ixe is managing. Finsa was founded in 1977 in Matamoros and specializes in industrial parks on both sides of the Texas-Mexico border. It also has parks in other parts of Mexico and in Argentina. Finsa counts AIG Global Real Estate as a minority investor.
Iron Ore Project Aims for IPO
Manabi Holding, a special purpose company administering steel assets and iron-ore exploration, is expected to IPO in Brazil. The company has appeared on the CVM’s list of those filing for an initial offering, usually the step taken before a prospectus is officially filed. A company official declines to comment on the filing. South Korea’s Korea Investment Corporation sovereign wealth fund and Canada’s Ontario Teachers’ Pension Plan are investors in the vehicle, according to local and wire reports.