Category: Equity

Chile’s largest systems information provider, Sonda, has set a date of the first half of November for its listing on the Santiago Stock Exchange. This would be the first time a local technology company has listed its stock and would be only the third local company in the sector in any Latin American market to go public. Sonda says it is planning to issue 200 million shares, representing 26% of its stock. Analysts estimate it could raise up to $100 million via the flotation. The company is looking to court foreign investors with a roadshow due to kick off next month. In the long term, it may consider listing in New York or São Paulo. The company, which is headquartered in Chile, has operations in nine other Latin American markets including Argentina, Brazil and Mexico. Sonda has, to date, expanded via acquisitions, most recently buying up the technical support and services division of Mexican company Qualita.

Brazil’s largest electric power distributor, Eletropaulo Metropolitana Eletricidade de São Paulo (Eletropaulo) has raised $529 million from a secondary offering of shares via Bovespa. The company, part of Brasiliana Energia, sold 13.76 billion shares – as preferred shares to domestic investors and as GDS to foreign buyers. The share sale will see AES Transgas Empreendimentos, a unit of US power firm AES, reduce its stake in Eletropaulo by around a third. AES will use the money raised to pay off $582 million of debt owed to state development bank BNDES. Credit Suisse acted as lead coordinator.

Leading Brazilian health insurer Medial Saúde has raised $335 million via its IPO on Bovespa’s Novo Mercado. It is the first company in the health insurance sector to list its shares. The company sold 34.52 million common shares, issuing some additional shares in the face of strong demand. Credit Suisse acted as lead coordinator for the transaction. Also coordinating were Citigroup, Banco Real and Espírito Santo Investment.

The goal of creating a regional capital market in Latin America has taken another step forward with the announcement by the Colombian Stock Exchange that it is planning to join the alliance between the Mexican Stock Exchange (BMV) and the São Paulo Stock Exchange (Bovespa). The alliance between Latin America’s two largest stock exchanges aims to allow investors in both countries to buy stocks listed on either exchange, instead of via New York, by next summer. The first stage of the plan to integrate the exchanges was agreed last November.

Brazilian real estate firm Klabin Segall is to follow others in the sector with the launch of its IPO set for next month. Klabin Segall is hoping to raise as much as $345 million from the flotation of its stock on the Novo Mercado of Bovespa. It plans to sell 32.3 million ordinary shares, of which 22.6 million will be offered via a primary offering. The company also has an option to issue an additional 15% of shares in the face of strong demand. Deutsche Bank and UBS will lead the issue.

Argentine Pampa Holding, part of Dolphin Group, will issue 300 million shares worth $111 million via the Stock Exchange as part of a structural reorganization and move to increase its share capital. The money will go towards completing the acquisition of two hydroelectric plants in Mendoza province and other investment plans in the sector. Dolphin bought Pampa last year with a view to using it as an investment vehicle for the electricity sector.

Brazil’s largest electric power distributor, Eletropaulo Metropolitana Eletricidade de São Paulo (Eletropaulo) is to make a secondary offering of shares via Bovespa worth up to $690 million. The company, part of Brasiliana Energia, is to sell 13.76 billion shares, with an option to sell an extra 2.04 billion in the face of strong demand. The shares will be sold to domestic investors and also to foreign investors as GDS. The sale of the shares will see AES Transgas Empreendimentos, a unit of US power firm AES, reduce its stake in Eletropaulo by around a third. AES will use the money raised to pay off $582 million of debt owed to state development bank BNDES. Credit Suisse is the lead coordinator of the operation.

Another Brazilian firm preparing to launch an IPO is Medial Saúde, one of the country’s leading health insurers. The listing on Bovespa’s Novo Mercado will be the first for a company in this sector. Medial Saúde is planning to offer 27 million common shares – 18 million via a primary offering and 9 million via a secondary offering. The company hopes to raise up to $292 million via the offerings. It also plans to issue ADRs on the international market. Credit Suisse will be the lead coordinator for the transaction. Also coordinating will be Citigroup, Banco Real and Espírito Santo Investment.

Brazilian construction firm and real estate developer Tecnisa is to follow other firms in the sector by floating its stock on the Novo Mercado section of Bovespa. The most recent company in the sector to list was Abyara, which raised $74 million from its IPO in July. Tecnisa has filed with the securities commission (CVM) to issue only common shares in primary and secondary offerings. The IPO is to be coordinated by Credit Suisse and Pactual.

Alternative energy firm Brasil Ecodiesel has applied to the Brazilian securities commission (CVM) to list part of its stock on Bovespa’s Novo Mercado, joining the 34 other companies currently quoted. The listing would be the first for the sector, reflecting the huge upswing in investor interest in biofuels as world oil prices continue to climb. According to the company, Brasil Ecodiesel is the country’s largest producer of biodiesel, a product based on soya and castor-oil, with a production capacity of around 45 million liters a year. This capacity is due to increase to 645 million liters a year by March next year following the inauguration of five new plants.