Compartamos Prices IPO at Top of Range

The first equity issue from a LatAm microfinance institution, Mexico’s Banco Compartamos, priced at the top of the range and the greenshoe was exercised. The bank, which makes micro loans to individuals, sold 5.13bn pesos ($467m) in series O shares on the Mexican Bolsa. International investors took $332.3m in the 144a Reg S tranche, while Mexican retail took $73m. The offering, which accounts for 30% of the bank’s outstanding shares, priced at the top of the range, at 40 pesos a share and included a 15% over-allotment option that was exercised. Compartamos raised the price range to 36 to 40 pesos a share from 28 to 35 pesos after meetings with investors. US investors accounted for around 45%, Europeans near 30%, 20% Mexico and 5% Brazilians. In the first day of trading, Compartamos shares appreciated by 25%. The deal enables shareholders, such as the IFC, which was the third-largest shareholder in the bank, to partially monetize their stakes.