Mexican telecom Maxcom raised about $205m in simultaneous offerings on the Bolsa and NYSE last week. Mexican shares, accounting for $40 million of the proceeds, priced at MXP27.10 and US ADRs priced at $17.50, both at the high end of expected ranges. “We went where there was the strongest demand,” CEO Rene Sagastuy tells LatinFinance, regarding the choice of the simultaneous foreign and domestic issue. Maxcom plans to spend $125m per year in 2008-2010 to add at least 100,000 new customers each year. The market is dominated by rival Telmex, but it offers ample room to grow, particularly in the lower-middle income sectors which Maxcom targets. Despite reporting a net loss of $1.6m for the first half of 2007, CFO José Solbes says Maxcom expects to post a net profit for 2008. The offering was 12 times oversubscribed, Solbes says, and went mainly to EM-focused long-term holders. Bank of America and other stakeholders raised an additional $52 million from the sale, led by Morgan Stanley in the US and Ixe in Mexico.
Category: Regions
DBRS Anoints Peru as High Grade
Peru got a shot in the arm Friday with a promotion to investment grade by DBRS, the Toronto-based rating agency. The agency gave it a BBB (low) with a stable outlook and lauds the country’s sustained economic growth and declining debt burden within a framework of fiscal discipline and sound monetary policy. “Peru’s high reserve levels, low debt-service requirements and flexible exchange rate provide an adequate cushion to absorb potential external shocks during the administration of President Alan García,” says DBRS. Gross public debt-to-GDP has declined from 47% in 2003 to less than 30%, due to fiscal prudence, adept liability management and high GDP growth, it adds. The government’s target is to reduce it to 25% of GDP by 2010.
Maxcom Launches NYSE, Bolsa IPOs
Mexican telecom Maxcom raised about $205m in simultaneous offerings on the Bolsa and NYSE last week. Mexican shares, accounting for $40 million of the proceeds, priced at MXP27.10 and US ADRs priced at $17.50, both at the high end of expected ranges. “We went where there was the strongest demand,” CEO Rene Sagastuy tells LatinFinance, regarding the choice of the simultaneous foreign and domestic issue. Maxcom plans to spend $125m per year in 2008-2010 to add at least 100,000 new customers each year. The market is dominated by rival Telmex, but it offers ample room to grow, particularly in the lower-middle income sectors which Maxcom targets. Despite reporting a net loss of $1.6m for the first half of 2007, CFO José Solbes says Maxcom expects to post a net profit for 2008. The offering was 12 times oversubscribed, Solbes says, and went mainly to EM-focused long-term holders. Bank of America and other stakeholders raised an additional $52 million from the sale, led by Morgan Stanley in the US and Ixe in Mexico.
Pemex Offers $1bn Exploration Tender
Pemex has issued a call for national and international companies to bid on $1bn in tenders. The projects include drilling wells in northern Mexico and maintenance work in several locations, beginning in first quarter 2008.
BB Holdings Plans AIM Listing
BB Holdings Limited, which primarily operates financial services businesses principally through The Belize Bank Limited and the Belize Bank International Limited in Belize and The Belize Bank (Turks and Caicos) Limited in the Turks and Caicos Islands, plans to float on AIM. Trading in the company’s shares is expected to start November 2. The company’s nominated adviser is Cenkos Securities and its broker is Fyshe Horton Finney Limited.
Mexico’s Financiera to Sell Shares
Mexican microfinance lender Financiera Independencia, plans to list up to 20% of the company, or 136m shares, on the local stock exchange later this year. Controlling shareholder Jose Luis Rion, president of the board, would see his stake reduced to 54.9% from 68.8%, while a stake owned by HSBC would fall to 18.68% from 19.99%. The Grupo Bursatil Mexicano brokerage will act as the lead placement agent in Mexico, while Credit Suisse will handle the international issue. Although the date and initial share price were not disclosed in the prospectus, Independencia provided an estimated price range of MXP22-MXP30 a share, which would value the company at MXP14.96bn-MXP20.4bn.
CS Launches EM Corporate Bond Index
Credit Suisse has set up an index to track the performance of corporate and quasi-sovereign bonds in LatAm, Emerging Europe and non-Japan Asia. To be included the bonds must be dollar denominated, have a minimum of $100m outstanding, have a minimum of a two year maturity and be a minimum of one year away from maturity. The largest maturity group is in the 0-4 years, occupying 33.2% and banks have the largest sector representation, with 30.2%. LatAm represents 30% of the index, with Asia representing 42% and EMEA with 23%. Brazil and Mexico represent 10% and 12% respectively. The index, called EMCI, will be provide data on the its spread over the LUCI, or US corporate bond market index, as well as returns and spreads by region and asset class.
Citi Raises Inbursa and Copel Equity
Citi has upgraded to buy Grupo Financiero Inbursa on improving business conditions and solid operating performance. “Since mid August (when the Mexican market began its recovery) to date, Inbursa has underperformed the MSEI by 23.6% and since the beginning of July, Inbursa’s share price return has been in line with the market’s (+2.0%),” says Citi. It also raised Copel to hold from sell, based on recent performance and adjusted the price target to 33 reais a share.
Sumitomo Mining Arm Launches Peru Subsidiary
Sumitomo Metal Mining has established a Peru subsidiary, based in Lima. Sumitomo metal Mining Peru is headed by Kazuya Okada. The company’s Peruvian mining operations, started in 2006, had been handled through its Santiago office.
Eton Park, Axis Launch Structured Vehicle
Eton Park, a New York-based multi-strategy fund and Axis, a Mexico City-based private equity shop, said Wednesday they have started a new company called Navix that will specialize in LatAm structured lending. The company is registered as a SOFOM, or specialty finance company that has raised $100m in equity finance. The next step will be to lever up its balance sheet with loans and credit lines and begin structuring asset-based loans to mid-market companies. “The needs of most Mexican corporates are underserved by the local financial institutions,” Gonzalo Gil White, managing partner at Axis and the CEO of Navix, tells LatinFinance. Navix will target a variety of sectors initially in Mexico, but very likely in other countries like Brazil eventually as well. One of its focuses includes short-term project and working capital loans for energy sector companies. Eton Park is the majority equity holder in the venture.