Category: Equity

Brazil’s Banco Panamericano succeeded in pricing an IPO Tuesday, but raised 28% less than it had originally hoped for. The offering was slated to come at BRL12.50-BRL15.00, but it ended up coming at just BRL10.00. This resulted in a maximum raise of $443m assuming a full exercising of the over allotment option, versus $610m if the deal had come at the midpoint. IPO investors have been particularly cautious when it comes to real estate and mid-cap banks, since oversupply from each sector has caused deal fatigue. The buyside is particularly wary of new names and illiquidity. UBS Pactual, Itaú BBA and BBI had books on the sale. Panamericano is the 10th IPO led by UBS to price below the range this year, according to Dealogic.

Moody’s has put Maxcom Telecomunicaciones’ B3 corporate family rating under review for possible upgrade due to better operating results and credit metrics following its IPO. The $242m proceeds from the float will be used to boost capital expenditures for the company’s growth strategy, which involves expanding its network to offer wire line telephony, data and video services to the medium and low income residential segment as well as to small and medium sized enterprises. The Mexican telecom has $200m in 11% of 2014 senior unsecured global notes. In the 12 months ending September 30, Maxcom posted revenues of approximately $200m with a 32% adjusted Ebitda margin, says Moody’s.

Following on the heels of a blowout Bovespa IPO, BM&F launched Friday its equity offer. The sale of 230m common shares for the Brazilian futures and commodity exchange has a price range of BRL14.6-BRL16.5 and is expected to raise over $2.3bn. JPMorgan, Merrill Lynch and Morgan Stanley are global coordinators and Bradesco and Itau are working as bookrunners on the local side. Pricing is lined up for November 28. If it comes at the mid-point, it will price at 34.5x 2008 earnings, according to a banker on the 144a deal. The Bovespa IPO is trading 40% higher than where it launched.

Mexican cable and broadcasting company Megacable priced its IPO late Tuesday at MXP34.50, above the MXP27.00-MXP33.00 filing range, which raised a $555m for the issuer. The book was heard several times oversubscribed, with 20% of it going to Mexican investors and 80% to international investors. Within the international group, 80% went to US investors, 30% European and 10% other countries, with a significant Brazilian participation, say bankers close to the deal. Megacable is the fourth Mexican IPO this year, according to Dealogic, following Findep and Maxcom, which came in October, and Compartamos, which came in April. JPMorgan had books on the offering, with several local shops assisting in distribution.

Colombia’s Banco de Credito plans to float up to a 15% stake in an IPO in late November to finance its expansion plans, according to local media reports. It expects to raise COP200bn-COP250bn ($99.5m-$124m). Banco de Credito plans to issue a minimum of 600m shares at COP430 each.

Brazil’s Banco Daycoval, which did an IPO in July, is raising $100m through an IFC A/B loan. The four-year financing consists of a $30m A loan and a $70m B loan, which is being jointly syndicated out by the IFC and Itaú Europa, the European arm of Itaú. The B loan pays Libor plus 145bp, and proceeds are for general corporate purposes. With the freshly raised equity, Daycoval and a slew of other mid-cap Brazilian banks have room on their balance sheets to take on debt, and will likely be tapping the loan market locally and internationally.

Minerva, the Brazilian beef producer, has hired Credit Suisse Corretora to act as market maker for its common shares listed on the Bovespa’s Novo Mercado. The initiative is aimed at reducing volatility and guaranteeing liquidity, as well as protection against speculative shifts that may hurt minority shareholders. Minerva holds 75m common shares, of which 24m are traded on the Novo Mercado. The contract has a 6 -month term, automatically renewable for equal periods.

Brazilian fertilizer maker Nutriplant has filed to IPO on the Bovespa, according to regulatory documents. The exact timing and amount have yet to be disclosed. HSBC has been hired to underwrite the sale.

Financiera Independiente, a microfinance institution based in Mexico, priced its IPO late Wednesday at MXP24.00, slightly below the MXP26.00 midpoint. The initial range was MXP22-MXP30. The deal traded well, closing its first day at MXP24.13, despite a significant sell-off in regional equity indices, including a 2.07% drop in the Bolsa. The deal suffered from a 15% drop in the stock of Compartamos, a recently IPOed microfinance working capital lender, in the last week of October. Since it is the only comp for Findep, Compartamos’ performance is seen as having an adverse effect on the new issue. Still, the book was heard 5x oversubscribed and unlike many recent Brazilian IPOs, it came well above the bottom of the range, raising $267m for the consumer lender. Credit Suisse led.

Financiera Independencia, the Mexican microfinance lender, was set to price late Wednesday an IPO for up to $326m equivalent in pesos. The initial range was MXP22-MXP30 and Credit Suisse is the lead. Underwriters are GBM International and HSBC. A minimum $284m was due to be sold.