Sare Builds Follow-on

Sare Holding has priced a MXP930m equity follow on at a 1.6% discount to Wednesday’s MXP3.10 close. The Mexican homebuilder sold 305m shares at MXP3.05 each. Demand topped MXP3bn, according to a banker on the sale, including about MXP1bn from private banking, MXP900m from international institutional investors, and MXP500m from the local institutional buyside. Sare plans to use proceeds to increase production and boost efficiency following a debt restructuring, using proceeds to provide working capital for completing projects. BBVA and Santander managed the transaction. It is the sixth equity offering from Mexico this year. The market now turns its attention to the expected MXP15bn IPO of OHL Concesiones Mexico, set to price November 10.