Category: Equity

Mexican Monex Grupo Financiero has delayed its IPO once more, this time until 2008 following the acquisition of Comerica Bank Mexico for an undisclosed sum. The company said it has chosen to push back plans to go public so that it can take time to better integrate the Bank, which it acquired from US-based Comerica and which it will rebrand as Banco Monex. The financial group began as a wholesale foreign exchange trader and has built itself into a group encompassing a brokerage and investment fund manager. Last October it announced it was considering apply for a banking license to establish banking operations to complement its foreign exchange activities.

Electricity provider Endesa Brasil, a subsidiary of Spanish utility company Endesa, is to launch an initial public offering of shares at the start of next year via Bovespa. The listing of Endesa’s shares on Bovespa’s Novo Mercado was a requirement of the International Finance Corporation, the private-sector arm of the World Bank, which took a minority stake in the company last month.

Brazil recorded inflation of 0.19% in July, as measured by the broad consumer price index IPCA, following a month of deflation in June. June’s price fall of 0.21%, the largest in eight years, was not repeated this month due to the rising cost of gas, transport and food. Inflation in the 12 months through July fell to 3.97%, from 4.03% in June and well within the government’s annual target of 4.5%.

Renault Argentina, a subsidiary of the French motor company, has delisted its shares from the local Buenos Aires Stock Exchange. The shares ceased to be listed on the Exchange from Tuesday, following a process initiated by the French company when it took full control of its subsidiary last year via a public share offering. Analysts questioned the value of a local listing when Renault Argentina took the step to float its stock in 1999.

Chile’s largest systems information provider, Sonda, has moved a step further towards listing on the Santiago Stock Exchange, something it plans to do before the end of the year. Sonda has already sought and received shareholder approval to float 25% of its stock on the exchange to raise funds of up to $100 million, analysts estimate. 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 the technical support and services division of Mexican company Qualita.

Brazilian mining and metals group MMX Mineração & Metálicos listed Monday on Bovespa’s Novo Mercado. As part of the IPO, MMX issued 1.26 million shares to raise $470 million. MMX, owned by Brazilian group EBX, is raising funds to finance several iron ore projects within the country in the face of growing demand for the mineral by the steel industry. The transaction was managed by Credit Suisse and Banco Pactual.

Chilean constructor Paz Froimovich is to list 25% of its capital on the Santiago Stock Exchange by the end of the year to finance its expansion plans, particularly in the provincial cities outside the capital. Paz Froimovich is owned by Paz Corp, which also owns real estate company Paz (formerly Inverpaz) and leasing company Viva Leasing. Earlier this year, the group restructured to create the holding company Paz Corp, and has been working towards a listing to be on a par with other constructors such as Besalco and Almagro. The IPO will be led by local broker LarraínVial.

Mexican Banco Inbursa, owned by local business magnate Carlos Slim, has begun to buy restaurant franchise operator Ece via the Mexican Stock Exchange. The public share offering aims to acquire 36% of Ece’s listed share capital, or 55 million shares, for $0.5 million. Once completed, Ece will cease to be a listed company on the Exchange. Ece owns and manages the restaurant franchises in Mexico of Hard Rock Café, Planet Hollywood, Official All Star Cafe and Rainforest Café.

The Colombian Stock Exchange (BVC) has just celebrated its fifth year in operation following the merger of the three stock exchanges that previously existed – Bogotá, Medellín and Occidente. The Exchange has benefited this year from a renewed privatization program by Alvaro Uribe’s government which has seen an increase in companies listed. However, the Exchange is still heavily concentrated in a small number of stocks and is dominated by local GEA conglomerate, which owns Bancolombia and Cementos Argos, among others.

Grupo Metro Country Club is to become the first company in the tourism sector to debut on the Dominican Republic Stock Exchange. The financial market regulator has approved a public offering of securities worth up to $39,000. The company says it will use the money raised to fund three tourism projects in the country.