A hearty new equity issuance pipeline is building in LatAm, though, as at the beginning of 2010, friction between buyers and sellers threatened to poison the punch.
Category: Equity
Posted inMagazine
Asian Investors Raise the Stakes
Asian wealth managers are looking to raise equity exposure while diversifying bond investment in LatAm. The opportunities will continue to grow alongside trade.
Posted inDaily Brief
Aeromexico Defines IPO
Aeromexico aims to raise around MXP3.1bn in an IPO on April 13, according to regulatory documents. The airline, in need of MXP16bn in growth capital over the next 2 years, plans to sell 79.5m shares at MXP30-MXP34 each, plus an 11.9m greenshoe. The deal would raise MXP2.9bn at the MXP32 midpoint. The airline has opted for a Mexico-only sale. Banamex, Actinver and Deutsche are managing the deal. It would be Mexico’s first IPO since OHL Mexico’s MXP11.2bn sale in November.
Posted inMagazine
Brazil Private Equity: European Firms Enter
Apax Partners last year announced its first deal in Brazil and is actively building a pipeline in LatAm. More European private equity firms are following its lead.
Posted inDaily Brief
Banco de Chile Raises $180m
Banco de Chile has priced a $180m equivalent equity follow-on, at a 1.6% discount to its Wednesday closing price. The bank priced 1.4bn shares at CLP62, for a total of CLP86.8bn ($180m), versus a Wednesday close of CLP63.01. About 35% went to Chilean pension funds, 25% to international institutions, 15% to Chilean institutions, 15% to retail and 10% to other investors. In a research report, IMTrust had said a fair price for the deal would be CLP64.20, and maintains a CLP74.40 12-month target. The transaction comes as part of a 3.4bn share shelf approved at the beginning of the year, and follows 2 weeks of investor meetings. Proceeds are marked for general corporate purposes, mainly growing lending operations. BanChile and LarrainVial managed the sale. Banco de Chile shares closed at CLP65.70 Thursday, up 4.3%.
Posted inDaily Brief
Aeromexico to Go Public
Mexican airline Aeromexico plans to float at least a 15% stake on the Mexican stock market, according to local news and wire reports citing remarks from CEO Andres Conesa. The executive says the deal could come before the Easter holidays, and would be offered only in Mexico. Aeromexico is looking to raise capital to partly fund its investment project, which calls for it to invest MXP16bn over the next two years. About two-thirds would come from the sale and the company’s own resources, with the rest coming from a $314m loan from Brazilian exim bank Banco Nacional de Comercio Exterior de Brasil used to buy Brazilian airplanes. Actinver, Banamex, and Deutsche Bank are reported to be among the banks managing the sale. It would be Mexico’s first IPO since OHL Mexico’s MXP11.2bn sale in November.
Posted inDaily Brief
Cement Maker Set for IPO
Brazil’s Cimentos Liz is scheduled to price an IPO today that could top BRL600m. The cement maker plans to offer 47.7m primary shares, at BRL10-BRL13 each. A 15% greenshoe and 20% hot issue are also possible. The deal would raise BRL630m if done at the BRL11.50 midpoint, assuming the greenshoe is exercised, and BRL713m if done at the top. The deal comes as new issuance announcements have picked up – a BRL500m Brazilian IPO from T4F, a $1bn IPO from Arcos Dorados and a BRL5bn follow-on from Gerdau are all coming soon. YPF’s performance, pricing at a 2.3% discount last week and trading up since, is seen as encouraging for the region’s larger issuers. However, Liz will hope to perform better than other small Brazilian deals have recently. International Meal Company was the latest to scrape the bottom of its price range at the beginning of March, and others have had to reset their price ranges. “Nobody wants to pay a valuation above a company’s future projects,” says a buy-side analyst at a Sao Paulo asset manager looking at the deal. He notes the price might seem high given Liz’s current size, though he sees the price as slightly more reasonable when considering the company’s expansion plans – a situation characteristic of many smaller IPOs this year. Liz has operations in the states of Sao Paulo and Minas Gerais, and is raising funds for expansion ahead of increased construction needs in anticipation of the 2104 World Cup and 2016 Olympics. It plans to use proceeds to improve and expand its plant and pay down debt. Liz recorded Ebitda of BRL79.7m in 2010, up from BRL49.8m in 2009. It is 100% owned by the Tracao holding vehicle for the founding Champalimaud family, which could see its stake reduced to as little as 66.5%, according to regulatory documents. BTG, Itau and JPMorgan are managing the sale. Also, Banco de Chile is scheduled to announce today the pricing for its equity follow-on, following closing of the offer period yesterday. The 1.4bn share follow-on would
Posted inDaily Brief
Cemex Reaches 2011 Obligations
Cemex has repaid approximately 98% of the total amount required by December 31 under its 2009 debt restructuring agreement, it says, following Tuesday’s $800m floating-rate bond sale. The cement maker, which restructured $15bn with banks in 2009, avoids a 50bp step-up to the refinanced debt’s interest rate of Libor plus 450bp. Cemex has also repaid 50% of the original balance outstanding under the agreement, and has addressed all maturities under the agreement until December 2013, it says. It sold $800m in 2015 bonds paying Libor +500bp Tuesday, getting $1.9bn in orders. Cemex also sold $1bn of bonds in January and $1.67bn of convertible bonds earlier this month.
Posted inDaily Brief
UBS Takes 40% of Jumbo
Chilean retailer Cencosud says UBS has agreed to acquire a 38.6% stake in its Argentina unit Jumbo Supermarkets for $442m plus an undisclosed fee over the next 2 years. UBS will buy the stake from PE funds Capital International, GEM, Palermo Argentina, SCF Chile Holdings, BSSF Chile Holdings and Pinebridge and multilateral bank IFC. The sellers had determined they would exercise their option to sell the stake to Cencosud in October, according to a regulatory filing. Celfin says the move is a positive one for Cencosud as it removes uncertainty surrounding the value of the stake and whether any of the sellers would attempt to sell them in the open market.
Posted inDaily Brief
Banco de Chile Set to Close FO
Banco de Chile is set to close an equity follow-on expected to raise $187m equivalent today. Pricing and final terms should be announced tomorrow. The 1.4bn share follow-on would raise CLP90.3bn ($187m) based on Tuesday’s CLP64.50 close. In a research report, IMTrust says a fair price for the deal would be COP64.20, and the shop maintains a COP74.40 12-month target. The transaction comes as part of a 3.4bn share shelf approved at the beginning of the year, and follows two weeks of investor meetings. Proceeds are marked for general corporate purposes, mainly growing lending operations. BanChile and LarrainVial are managing the sale. Elsewhere in LatAm equity, Brazil’s Cimentos Liz is scheduled to follow Thursday with a BRL550m IPO, and entertainment promoter T4F is set for a BRL500m debut next week. These smaller equity raises set the stage for Arcos Dorados’ $1bn New York IPO and Gerdau’s BRL5bn follow-on due in the week of April 11.