Category: Equity

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.

Chile’s largest systems information provider, Sonda, is expected to raise between $200 million and $230 million when it launches its eagerly awaited IPO on the Santiago Stock Exchange this Friday. This will be the first IT company to list on the exchange and only the third local technology company in any Latin American market to go public. Sonda plans to issue 200 million shares, representing 26% of its stock. The company is hoping that up to 25% of the shares will be taken up by foreign investors. In the long term, it may consider listing in New York or São Paulo. According to Santander Investment and Consorcio Financiero, who are arranging the offering, the money raised will be used to fund IT acquisitions next year. Sonda has, to date, expanded via acquisitions, most recently buying up the technical support and services division of Mexican company Qualita. The company, headquartered in Chile, has operations in nine other Latin American markets including Argentina, Brazil and Mexico.

The Mexican Stock Exchange (BMV) Wednesday launched a new composite index, IPC CompMx, aimed at offering a wider choice to investing local pension funds, Afores, and to help develop the domestic capital market. The new, broader, index comprises 60 Mexican companies and is divided into three sub-indices – LargeCap, MidCap and SmallCap – each containing 20 companies.

Brazilian food manufacturer M. Dias Branco, which makes cookies and pasta, says a shareholder has raised almost $170 million by listing shares of the company on Bovespa. The initial public offering of 17.22 million voting shares was made by investment fund Dibra Fundo de Investimento em Participações, which sold the shares for 21 reais a share. The offering was led by Banco Pactual.

Argentine energy firm Socotherm América is preparing to list up to 15 million shares next month on the Buenos Aires Stock Exchange, representing around 17.5% of its stock. This will be the first new listing on the exchange in almost six years. 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.