Mexican Restaurateur Plots Float

Grupo House aims to be the latest Mexican issuer to take advantage of regulatory changes making it easier for smaller companies to list on the Bolsa. The restaurant operator estimates a MXP400m IPO, through the sale of 50m shares, plus a possible 7m overallotment, in a MXP7.00-MXP9.00 range. House has not set a date for the transaction, and has hired Bank of America Merrill Lynch to manage. The issuer had Ebitda of MXP39m in 2009 and MXP52m in 2008, according to filings. It plans to use proceeds from the IPO to repay MXP195m in bank debt with Banco Invex, and the remainder for investing in its business plan. House operates 97 restaurants under the Arrachera House, Taqueria House and Sixties brands. It had planned to raise funds through the CCD market last year, but is among the many smaller issuers changing tack now that there is easier access to institutional investment via the Bolsa.