Argentina’s Emdersa Launches $200m Share Sale

Argentine power distributor Empresa Distribuidora Electrica Regional opened yesterday the books for its offer of up to 155.6m ordinary class B shares in a local and international equity offering. The company anticipates a pricing of ARS3.70-ARS4.40 for ordinary class B shares and $11.75-$13.97 for global depository shares. In addition to Buenos Aires, the sale will also be carried out on exchanges in New York and Luxembourg, marking an IPO for the company in those markets. The owner of three distributors in the Salta, San Luis, and La Rioja provinces plans to use proceeds to cover operating and financing costs and to invest in expansion projects and acquisitions. Emdersa is controlled by a unit of JPMorgan, which is managing the sale along with Merrill Lynch. The selling shareholders, many of whom acquired stakes Emdersa in 2005, are local fund GPU Argentina Holdings, JPMorgan Overseas Capital, Whitewater EMCO and EMCF, and D.E. Shaw Laminar Emerging Markets.