Karoon Gas Australia has officially withdrawn the IPO registration for its Brazilian unit. Karoon had marketed a deal last year and was set to price in November, only to postpone indefinitely due to market conditions. Karoon was looking to raise funds to develop 5 Peruvian and 7 Brazilian blocks. BTG, Credit Suisse and Morgan Stanley were managing. Pricing oil deals that are very close to being start-ups has proven tricky, in a year where many new issues have had difficulty. Queiroz Galvao Exploracao e Participacao raised a $1.52bn IPO in February, landing BRL4.00 below the bottom of its target price range at BRL19.00, though it closed Tuesday at BRL20.31. Perenco Petroleo e Gas do Brasil, the Brazilian unit of UK-based oil exploration company Perenco, has filed for an IPO but has yet to launch.
Category: Equity
EDP Plans Brazil Selldown
Energias de Portugal (EDP) is planning to hold a secondary share sale of Energias do Brasil (EDB) shares, Energias do Brasil says. The Portuguese utility holds 64.8% of EDB, and would like to reduce that by as much as 14.0%, and has received board approval to do so. It does not give any indication about the timing of the sale. EDP had said in March that it aims to raise EUR500m though asset sales this year.
MS Issues BRL Bond
Morgan Stanley has issued BRL200m in 2015 inflation-linked global BRL bonds, according to a banker on the deal. The bank priced at par with a coupon of IPC+ 5.5%. It is the bank’s second global BRL, following a BRL575m cross-border 2020 in October, as it looks to diversify funding. The sale was mostly retail and pension fund driven, the banker says. Morgan Stanley and Itau managed the deal, which follows Banco Votorantim’s BRL1bn 2016 inflation-linked bond that was the first such deal in nearly 4 years.
LatAm Equity Sees Inflows
LatAm equity funds saw $74m in inflows for the week ended May 11, according to EPFR Global, amid the second week of inflows for Brazil equity funds. EM funds took in $268m during the week. Overall performance was negative for the week, as EM funds were down 0.21% for the week ended May 12, and 0.79%% ytd, according to Lipper. However, LatAm funds rose 1.19% for the week, but remain down 4.71% ytd. Meanwhile, global small and mid-cap funds are up 0.81% for the week and 5.75% ytd.
Atlas CCD Plans Retap
Mexico’s Atlas Discovery Capital is preparing to reopen its Certificado de Capital de Desarrollo (CCD) to raise MXP650m, according to regulatory filings. The PE firm closed the original transaction in December 2009, raising MXP1.4bn. The 10-year fund created by the deal makes investments in a diverse variety of Mexican businesses, with a focus on middle-class consumption. Its activities to date include investments in airline Volaris and transportation company Lipu. The return structure is similar to other CCDs – investors recover the funds invested, then are paid an 8% preferred return, with remaining funds distributed 80% to investors and 20% to Atlas. It does not give a date for the reopening, to be managed by ING.
Mexican Lender Readies IPO
BanRegio, a Mexican bank focused on lending to small and medium-sized businesses, is planning an IPO according to a regulatory filing. Grupo Financiero, the holdco for BanRegio, plans to sell 86m primary shares while its controlling shareholders plan to offer 30m secondary shares. If a 15% greenshoe is exercised, the transaction would represent a 34% stake in the bank. BanRegio does not give the total expected size or the timing of the sale. It is raising funds to expand operations. Banamex and BBVA Bancomer have been hired to manage the sale. BanRegio had MXP53.5bn in total assets at year-end 2010, up 12.3% from 2009, it says. Corporate loans constitute 80% of its MXP24bn loan portfolio, with a stated focus on small and medium-sized businesses. Founded in Monterrey in 1949 by Manuel Santos Gonzalez as Banco Regional del Norte, it is present in 13 Mexican states in the North and Center of the country. With only Aeromexico going public so far this year, Mexican debutants are lining up hoping to top last year’s MXP18.08bn total from 4 deals. Fellow bank Credito Real is also expected to list for at least MXP3bn this year, through UBS, Morgan Stanley, BBVA and Ixe. Homebuilder Javer plans to raise some $300m equivalent, with Bank of America Merrill Lynch and Credit Suisse heard close to the mandate. Dairy Grupo Lala is heard picking JPMorgan and Morgan Stanley for its IPO team that should also include Mexican banks. Other Mexican companies in the IPO pipe include airline Volaris and theatre operator Cinepolis.
BR Malls Set for Share Sale
Brazilian developer BR Malls is set to price an equity follow-on today that could top BRL600m. As it seeks funds to continue expansion, the shopping mall operator will hope to capitalize on demand for Brazilian retail exposure. The issuer’s shares are trading down slightly since the April 29 announcement that the company would seek a follow-on, closing at BRL16.60 Monday. BR Malls had closed at BRL16.93 prior to the announcement. The 34m primary shares on offer would raise BRL649m at that level, assuming the exercise of a 15% greenshoe. A 20% hot issue is also available. Proceeds are marked for acquisitions, the company says. The deal was the third to use a legal change last year that allows issuers with a minimum BRL5bn market cap and 3 year history as a public company to file and launch a follow-on simultaneously, and is the first to do so without announcing its intentions beforehand. Bradesco, BTG Pactual, Goldman Sachs and Itau are managing the sale.
LatAm Equity Sees More Outflows
LatAm equity funds saw $149m in outflows for the week ended May 4, according to EPFR Global. Brazil equity funds posted outflows of $38m. Mexico funds also had outflows of $51m. Colombia and Peru both saw inflows of $9m and $18m, respectively. EM funds took in $1.2 billion during the week. Performance was negative for the week, as EM funds were down 3.78% for the week ended May 5, and 0.58%% ytd, according to Lipper. LatAm funds dropped 5.00% for the week, and are down 5.78% ytd. Meanwhile, global small and mid-cap funds are down 2.87% for the week but are up 4.88% ytd.
Brazilian Watchmaker Plans IPO
Brazilian watchmaker and distributor Technos has registered for an IPO, according to the CVM. It has not indicated the size or timing of the sale, but has indicated it plans to include both primary and secondary shares. Credit Suisse, Goldman Sachs and Itau are managing. Technos was founded in 1956, and recorded BRL59.1m in Ebitda in 2010, up from BRL45.1m in 2009, it says. Technos counts PE firm DLJ (40%) and Brazilian asset manager Dynamo (32%) among its ownership.
Petersen Buys 10% Stake in YPF
Grupo Petersen announced yesterday it would exercise its option to buy 10% of the capital of YPF for $1.3bn from Repsol. The deal had been expected since Petersen, controlled by the Argentinean Eskenazi family, acquired a 14.9% stake in the Argentinean oil and gas company in 2008 with the option to buy the additional 10%. Following the transaction, Repsol will hold 58.23% of YPF while Grupo Petersen will control 25.46%. Repsol says it plans to continue to bring international and Argentine minority investors into YPF.