ECM Kicks Off Diversity Month

LatAm equity investors are gearing up for at least 6 scheduled deals in the next 3 weeks, including a trio on Thursday. Though only OHL Mexico’s MXP15bn IPO should turn heads in terms of size, diversity seekers will be encouraged in that only 1 in 6 is Brazilian. The group should test enthusiasm for ex-Brazil equity, which may be keen following continued Petrobras overhang and that market’s most recent IPO, HRT, trading down 6.3% in the 2 days trading since debut. Following recent enthusiasm in the bond markets for Argentina, real estate developer TGLT is set to price Thursday what would be that country’s first IPO since 2007, for $100m-$130m equivalent. The subscription period launched October 21, with a ARP9.00-ARP11.50 range for the sale of 45.4m shares, with the possibility of upsizing to as much as 61.8m. Raymond James Argentina is managing the sale. Elsewhere, Brasil Insurance is set to raise more than BRL500m Thursday, through the sale of 191,000 primary and 191,000 secondary units, with the possibility of a 15% greenshoe and 20% hot issue. The IPO – welcome as a play away from commodities – has a BRL1,250-BRL1,450 range, and is led by Morgan Stanley, BTG Pactual, JPMorgan and HSBC. Meanwhile, Peru’s Exalmar is shooting for more than $100m in what would be that country’s first domestic IPO since 2007. Elsewhere, Mexican homebuilder Sare is also looking to raise Thursday up to MXP805m through a follow-on sale of up to 317m primary units, through BBVA and Santander. Sare closed Tuesday at MXP3.10. The Mexican market is most anticipating OHL, coming between November 4 and November 11 at MXP24-MXP30, which should test appetite for size in that market. Finally, metals processor Molymet is looking to raise more than $200m, in a follow-on that would be Chile’s first deal since March.