Category: Equity

Peruvian steelmaker Aceros Arequipa is planning to issue $150 million of 10-year notes, the company said in a filing to the Lima Stock Exchange. The proceeds will go towards modernizing facilities to increase output.

Colombian steelmaker Acerías Paz del Río (APR) is to be auctioned by the government via the Colombian Stock Exchange on March 16, according to local media reports. Last year the government, together with other shareholders, set a minimum price of $185 million (425.9 billion pesos) for the controlling interest (52%) in the steel producer. APR, which is the only integrated steelmaker in Colombia, has been in receivership since 2003. Those interested in buying the company include Arcelor Mittal, Brazil’s CSN, Votorantim and Argentina’s Techint. Brazil’s Gerdau was excluded from bidding earlier this year by trade and industry regulator SIC because of monopoly concerns. The company, which is currently Colombia’s largest steelmaker, can participate in the auction if it sells some of its local assets. Local investment bank Latinvestco is handling the sale.

Brazilian sugar and ethanol-producer São Martinho has joined industry rival Cosan by listing its shares on Bovespa. São Martinho raised $175.6 million on Friday via an initial public offering of shares. The company sold 10.2 million new voting shares and shareholders sold 8.2 million existing voting shares at 20 reais per share, near the top of the price range expected. Cosan – the country’s largest producer – became the first in its sector to go public two years ago when it raised $350 million.

Brazil’s Iguatemi Empresa de Shopping Centers, which owns shopping malls, priced a $224 million IPO Tuesday. It sold 2.39 million shares at 30 reais, or $14.08 per share, according to Dealogic. UBS-Pactual and Itau BBA split the books on the deal, earning a total fee of $6.7 million for their work. The offering was filed on November 16. Citigroup and Santander were underwriters.

Brazilian mining company MMX Mineração e Metálicos said in a filing to Bovespa on Wednesday that it had initiated its global depositary receipt program. Under the Level I program, each common share is equivalent to 20 GDRs. Banco Itaú is acting as custodian; Bank of New York as the depositary institution. The program was approved by shareholders last month.

Mobile phone operator Colombia Móvil is planning to raise up to $82.5 million from it IPO, launched today, Monday. According to Dow Jones, the company is selling shares representing 17.6% of the company’s capital. Colombia Móvil was acquired last year by Luxembourg-based Millicom, which paid about $479 million for 51% of the operator. Corporación Financiera Colombiana is structuring the sale.

Family-owned Brazilan bank, Banco Pine, is to become the first mid-sized bank to float its shares on Bovespa, according to a filing with the securities commission, CVM. Analysts expect the IPO will lead to several more from local mid-sized banks in the near future. The bank reported assets in 2006 worth around $1.5 billion, a loan portfolio of $600 million and net profits of $29.6 million.

Two more Brazilian real estate firms have joined the burgeoning ranks of those in their sector to issue IPOs on Bovespa. Camargo Correa Desenvolvimento Imobiliário, the real-estate unit of local conglomerate Camargo Correa priced its IPO at 14.50 reais ($6.8) per share, midway between the expected range, to raise around $244 million. The company is selling 36 million common shares, in Brazil and abroad under 144A rules. Credit Suisse is leading. And Rodobens Negócios Imobiliários is selling 20 million shares at 19.50 reais ($9.13) to raise $183 million. JP Morgan is coordinating. Shares of both companies will begin trading today, January 31. Last week, PDG Realty debuted on the Exchange, bringing in $295 million via its IPO.

Brazilian real estate company PDG Realty priced its IPO at 14 reais ($6.59) to raise $296 million via Banco de Investimento, Banco UBS Pactual, Deutsche Bank. The deal had been heard between 13.50 and 16.50 reais. The company is selling 45 million shares — 30 million in a primary offer and 15 million in a secondary offer. The shares will be listed on Bovespa’s Novo Mercado. PDG Realty joins a raft of other Brazilian real estate companies attracted to launch IPOs in the declining domestic interest rate environment.

Bradesco, Brazil’s second-largest private bank, has bought local, niche bank BMC, the bank announced in a note to Bovespa. It paid $375.6 million (800 million reais) in shares for the São Paulo-based payroll and retirement loans specialist. The exchange of stocks will be as follows: 600 million reais at the time of sale and 200 million reais depending on the performance of BMC in the next two years. During this period, Bradesco will manage BMC as an independent structure, maintaining its main executives. According to a filing with Brazil’s securities commission, CVM, Bradesco will increase capital by an equal amount to pay for the acquisition, worth 0.94% of Bradesco’s capital. The new shares will be issued at the close of the acquisition, expected by the end of the first half of the year. Bradesco is looking to expand and diversify its loan portfolio with the acquisition, which will give it an extra 2 billion reais of loans. Goldman Sachs advised BMC, while Bradesco’s investment banking unit Bradesco BBI advised the larger bank. Following the news of the acquisition, ratings agency Fitch placed the foreign-currency, long-term IDR rating assigned to Banco BMC on rating watch positive.