Category: Equity

Argentine agrochemicals company Insumos Agroquímicos (Insuagro) will become the second SME to list on the Buenos Aires Stock Exchange, when it floats its stock towards the end of the month. The company kicked off its domestic roadshows in Buenos Aires, and is looking to drum up interest in the sale of 2 million shares in an IPO it hopes will raise 1.5 million pesos ($0.5 million). The shares, which represent 18.8% of Insuagro’s capital, are looking to price between 0.78 and 0.81 pesos and will be placed by local brokers Cordeu y Benedit. Insuagro will be the third company in as many weeks to list on the local stock exchange after six years without any IPOs. It will also be only the second firm to list on the newly launched SME board at the exchange. The offering has been in the pipeline for several months.

Mexican automobile finance company NR Finance has filed with the Mexican Stock Exchange to issue up to 10 billion pesos ($922.5 million) of revolving notes (certificados bursatiles). The 60-day notes will be denominated in pesos or inflation-indexed pesos (UDIs). The Sofol (limited financial entity) is currently in the process of becoming a Sofom (multiple financial entity). NR Finance México was created in September 2003 for the Mexican market following the formation of the Renault Nissan Alliance. By 2005 it was the third-largest auto financing company in the local market.

Brazilian medical supplies manufacturer Cremer has said it is cancelling its proposed initial offering of shares via Bovespa. It offered no explanation for cancelling the planned primary and secondary share offerings.

Argentine sportswear company DACSA Sportmix will become the first SME (PyME in Spanish) to list on the new board at the Buenos Aires Stock Exchange set up for small and medium-sized enterprises. It will also be the first locally owned company to list since 2000 following Italian-owned Socotherm’s listing on the main board Thursday. Puente Hermanos is leading the offering. The inauguration of the Exchange’s PyME board has been much anticipated with several companies in the line-up to list.

Brazilian property developer and construction company Gafisa is to make a new primary and secondary offering of shares, including ADRs. The company launched its IPO on Bovespa in February, raising $433 million from the sale of 400 million shares. Merrill Lynch will coordinate the transaction. The company gave no further details about the new listing.

Socotherm Américas, a regional subsidiary of the Italian company Socotherm, became the first company to launch a true IPO on the Buenos Aires Stock Exchange in almost six years, when it listed 15 million shares Thursday. The share sale, representing around 17.5% of its stock, raised $35.7 million, just short of expectations. Banco Río de la Plata and HSBC led the transaction. The Argentina-based subsidiary, which serves the energy transportation industry, hoped to raise around $40 million via the IPO to fund plant construction in Venezuela and the Gulf of Mexico, and increase operations in West Africa.

Odontoprev, Brazil’s largest dental insurer, is to float its stock on Bovespa’s Novo Mercado. The preliminary prospectus released by the company details the IPO comprising a primary offering of 5.8 million ordinary shares and a secondary offering of 10.4 million preferred shares. The IPO is expected to raise up to $254 million. Bookbuilding will begin today, November 9, and the issue looks to price November 29. Coordinators Itaú and USBS are giving a price guide of between R$20 and R$28 per share.

Mexican markets showed resilience Monday, despite three small bomb explosions in the capital in the early hours of Monday morning. The benchmark IPC index closed the day up 2.43%, driven by Wall Street and the rising stock of América Móvil. The peso, however, fell back 0.41% against the dollar and the yield on Mexico’s benchmark 8% 2015 peso bond rose to 7.934%, from 7.922% Friday, following the attacks aimed at political and financial targets in the city. Three small bombs exploded almost simultaneously at the federal electoral court, the headquarters of the PRI and at a branch of Canadian Scotiabank. No one was injured. A fourth, unexploded device, was reportedly also found. The political climate in Mexico has been tense since elections took place on July 2. Losing candidate, Andrés Manuel Lopez Obrador (AMLO), has refused to acknowledge the victory by president-elect Felipe Calderón. Meanwhile, in the city of Oaxaca, a five-month protest by activists and demonstrators, calling for the resignation of the state governor, led to federal troops being deployed last week leaving 15 dead.

Grupo IMSA, Mexico’s largest steelmaker, is preparing to buy back the remaining 12% of its stock via a public offering on the Mexican Stock Exchange, thereby clearing the way for the company to be delisted. The offering is expected to take place around the middle of November, following approval from the securities commission for the transaction. Last month, the Canales Clariond family increased its shareholding in the Group by buying up the 43% stake held by other family members for just over $1 billion. IMSA has operations in Mexico, Central America and the United States.

Argentine energy firm Socotherm América will become the first new listing on the Buenos Aires Stock Exchange in almost six years, following approval from the securities commission (CNV) to list up to 15 million shares, representing around 17.5% of its stock. Banco Río and HSBC will lead the transaction. The company hopes to raise around $40 million via the IPO to fund plant construction in Venezuela and the Gulf of Mexico, and increase operations in West Africa.