AquaChile has retained IM Trust to help it raise $100m in equity ahead of a potential IPO, according to a Chile based banker not involved in the deal. According to the banker, AquaChile is hoping to IPO in 1-2 years. AquaChile was not immediately available for comment and IM Trust did not return calls. A report in the Chilean press says that AquaChile could bring in a strategic partner for 20%-30% of its equity.
Category: Equity
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GEM Equity Funds Break New Record
In the week ended October 20, GEM equity funds pulled in $3.76bn, posting record inflows for the second time in the past 3 weeks, says EPFR Global. LatAm funds meanwhile, have taken in fresh money for 10 straight weeks, bringing total inflows since the beginning of the year to $10.83bn. Brazil funds, which have seen inflows of $2.28bn since the beginning of September, were the most favored LatAm funds despite the increase of the IOF tax to 6.00% from 4.00%, EPFR says. Still, Lipper data show that performance of LatAm equity funds was negative, dropping 3.07% in the week ended October 21. Year-to-date the funds are up 13.90%. EM funds lost 1.37% in the week, but are up 15.17% ytd and global small and mid-cap funds lost 0.76% in the week and are up 13.75% ytd.
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Argie Developer Launches IPO
Real estate developer TGLT has opened the subscription period for an IPO, the first from Argentina in more than 2 years. The period will close October 28, and the developer expects to price the following day, according to a regulatory filing. It does not specify a price range, though it has previously indicated that it aims for a total of $50m-$70m equivalent. Brazil’s PDG Realty will remain the largest shareholder in the company. Raymond James Argentina is managing the sale, the first IPO since fellow developer Consultario raised $113m in May 2008.
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HRT Taps Petrobras Equity Gap
Brazilian E&P company HRT Participacoes has raised BRL2.62bn in an IPO. It takes advantage of demand from Brazilian oil investors looking to diversify away from Petrobras, whose stock has dipped since its $70bn September capital raise. “This sector is at a very important moment, but the question of Petrobras has been very negative” says a Rio-based portfolio manager looking at the deal. “There should be some sizeable flows moving into other names in the sector.” HRT priced 2.18m units at BRL1,200, the midpoint of its BRL1,050-BRL1,350 range. The total includes a 243,000 share (15%) greenshoe and 324,000 share (20%) hot issue. The base deal was heard about 5x subscribed, boosted by large anchor orders. Investors apparently weighed the greenfield risk of HRT’s projects against the expertise of management, which includes ex-Petrobras officials. The issuer is raising funds to develop blocks in Brazil and Africa won since entering E&P last year. According to the prospectus, 75% of proceeds from the IPO will go toward exploration in Brazil’s Solimoes basin, 15% for exploration of offshore blocks in Namibia, 2% to explore in other Brazilian blocks and 8% for other projects. HRT was founded in 2004 as an oil services company, IPEX, by a group of former Petrobras and ANP executives, moving into E&P in 2009. HRT held 2 private share sales in 2009 to raise BRL479m, according to regulatory documents. It counts MSD Capital, Perella Weinberg Capital and Senator Investment among shareholders. Credit Suisse was global coordinator, with Citi and Goldman Sachs as bookrunners. Australia’s Karoon Petroleo e Gas should be the next IPO from the sector, with launch heard likely within a week.
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Lopes Builds Follow-on
Brazilian real estate developer Lopes has raised BRL207m from an equity follow-on. It priced 5.52m shares at BRL37.51, flat to Thursday’s BRL37.51 closing price. The total includes a 720,000 share greenshoe. The issuer expects to spend about BRL50m of proceeds on purchasing a 31% stake in Rio real estate consultancy RV Patrimovil, which would give it control. The remainder will go to future acquisitions, with Lopes noting it is in discussions with 4 possible targets. BTG, Goldman Sachs and Itau managed the transaction. Lopes raised BRL475m in a late 2006 IPO through Pactual.
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OHL Lays Out Mexico IPO Terms
OHL aims to raise MXP15bn from an IPO spinning off 30%-35% of its Concesiones Mexico unit. The Spanish builder plans to sell up to 552.3m units, including a 15% greenshoe, or 480.3m shares without, according to regulatory documents. The sale would raise MXP14.9bn with the greenshoe or MXP13.0bn without, if priced at the MXP27 midpoint of the MXP24-MXP30 range. The issuer expects to price between November 4 and November 11. It should see 35%-40% placed in Mexico and the rest internationally. Of the 552.3m share total, 116.2m would come from a secondary issue. BBVA and Santander are managing the Mexican portion, with Credit Suisse, Santander and UBS handling the international side. OHL is building, and wholly owns, the Bicentenario elevated Mexico City toll road, Libramiento Norte de Puebla road, and latter phases of the Circuito Exterior Mexiquense road. It also operates the Circuito Exterior Mexiquense Phase I road, Carretera Amozoc-Perote road and Toluca International Airport, of which it owns 87%, 55% and 33%, respectively.
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Brazilian ECM Revs Back Up
HRT Participacoes is expected to raise BRL2.0bn-BRL3.0bn from an IPO today, with compatriot Lopes also scheduled to price a follow-on that should raise BRL150m-BRL250m. Oil and gas operator HRT would raise BRL2.62bn if done at the midpoint of a stated BRL1,050-BRL1,350 range and its hot issue and greenshoe are fully exercised. HRT says the transaction will result in at least a 25% float, and raise funds to develop blocks in Brazil and Africa won since entering E&P last year. Credit Suisse is global coordinator, with Citi and Goldman Sachs as bookrunners. The deal offers investors what should be the first of many more opportunities to play Brazilian oil, and may benefit from Repsol’s pulling of a $4bn Brasil IPO that would have likely also arrived this month. Meanwhile, Lopes plans to sell 4.8m shares, plus a possible 15% greenshoe and 20% hot issue. The transaction would raise BRL241m at Wednesday’s BRL37.12 closing price in the event of the full overallotment, and BRL178m without. The issuer expects to spend about BRL50m of the proceeds to purchase a 31% stake in Rio real estate consultancy RV Patrimovil, which would give Lopes control of Patrimovil. The remainder will go to future acquisitions, with Lopes noting it is in discussions with four possible targets. BTG, Goldman and Itau are managing the transaction.
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Brasil Insurance Reanimates IPO
Brasil Insurance Participacoes e Administracao has launched investor meetings for an IPO on the Bovespa targeting more than BRL500m, after delaying a sale since an initial filing in April. The insurance broker composed of 23 local brokerages is targeting an October 28 pricing of 191,000 primary and 191,000 secondary shares, with the possibility of a 15% greenshoe and 20% hot issue. Such a sale would raise BRL516m if priced at the midpoint of the BRL1,250-BRL1,450 range without a shoe or hot issue, and BRL748m if priced at the top with both exercised. The selling shareholders in the secondary offering are the Fundo Gulf II investment fund and a group of private individuals. Brasil Insurance had an estimated total gross income of BRL130m in 2009, according to its regulatory filing. Morgan Stanley is lead coordinator, with BTG Pactual, JPMorgan and HSBC as joint bookrunners.
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Qatar Buys Into Santander Brazil
Santander has agreed to sell a 5% stake in the Santander Brasil unit to Qatar Holding in the form of $2.72bn in convertible bonds. The mandatorily convertible 6.75% 3-year notes come with an exchange price of BRL23.75. The deal with the sovereign wealth vehicle will help Santander Brasil reach its goal of a 25% free float by 2014, Santander says. Last year’s BRL12.3bn IPO of the Brazil unit floated about 15%. Santander Brasil closed Monday at BRL24.53.
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Vale Says Fertilizer IPO Next Year
A spinoff of Vale’s diverse fertilizer assets will likely take place next year, and is taking time due to the diverse number of assets to be grouped together. “We are trying to group all of our assets together during the next 5-6 months to be ready to go to the market next year,” Mario Barbosa, head of Vale’s fertilizer unit, tells reporters following a presentation to analysts and investors in New York. The Brazilian miner, which spent $4.59bn in January to buy a controlling stake of fertilizer maker Fosfertil, must bring together assets in countries including Brazil, Argentina, Canada, Mozambique and Peru to prepare for the spinoff. Barbosa does not specify where the listing or listings will be, but CEO Roger Agnelli, speaking at the same event, notes that Fosfertil is listed in Sao Paulo and Vale would like to maintain the presence there, though with an increased size. Vale plans to grow organically, rather than through acquisitions, Agnelli says, as it has strong enough cashflow to expand existing operations in different countries. It plans to spend $26bn-$28bn on capex in the next 2 years. Vale will not need to increase leverage to fund itself, CFO Guilherme Cavalcanti tells LatinFinance on the sidelines of the event. It does not have immediate debt issuance plans, but does not rule out liability management transactions if costs of funds can be lowered significantly, he adds.