Category: Equity

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.

Shares in Brazilian real estate developer Cyrela rose 3% on Bovespa’s Novo Mercado Thursday after the company announced it will make a primary offering of 24.7 million common shares via the exchange. In case of strong investor demand, the company may also make a secondary offer of 3.705 million shares. Pricing is due July 19. The offering will be coordinated by Credit Suisse.

Bancolombia, Colombia’s largest financial entity, has taken over at the top of the general price index of stocks (IGBC) of the Colombian Securities Exchange (BVC). Bancolombia will have the largest weighting of the 29 stocks in the index for the period until September (16.36%), taking the place of Suramericana de Inversiones (Suramerinv), which had reigned supreme for the past 18 months, but whose weighting now falls from 14.48% to 13.42%. Of the 29 companies that now comprise the IGBC, 10 – including Bancolombia – belong to the GEA conglomerate, accounting for 67% of the index.

It was another grim day of trading on the Colombian stock exchange Tuesday with several stocks suspended during the course of the day and some losing more than 17% of their value. Although the IGBC had fallen overall only 8.73% by close of play, trading was on the verge of being suspended throughout the day, as it neared the 10% fall which halted dealing on Monday. Across the region stocks continued to slide: Brazil’s Bovespa fell 2.1%, while Mexico’s BMV dropped 2%.

Lima’s general stock index (IGBVL) rose 4.04% Monday morning, reaching record highs, on the news that former president Alan García had clinched victory from nationalist Ollanta Humala. Meanwhile, the Peruvian currency, the nuevo sol, strengthened 0.82% against the dollar to levels not seen since the beginning of 1999. With 92.5% of the second-round presidential ballot counted, Alan García of Peru’s center-left political party, APRA, had won 53.20% of the votes against 46.79% polled by Humala. The markets were clearly pleased and relieved that the votes of the middle class and business community won out against the populist choice.

São Paulo’s stock exchange, Bovespa, is considering launching an IPO of its shares next year. Bovespa is Latin America’s largest stock exchange and the IPO would allow the exchange to invest and compete with exchanges in the US and Europe where many Brazilian companies are listed.