Exalmar Revives Peru IPO Market

Peru’s Pesquera Exalmar has priced a PES341m ($120m) IPO, the country’s first since 2007, boosting hopes for other Andean issuers. The fishmeal and oil producer sold 57.5m primary and 14.2m secondary shares at PES4.75, according to a banker on the sale. The 71.7m unit total falls short of a 112m maximum, but ECM bankers and investors are optimistic more Peru issuance should follow, particularly in the consolidating fishery sector, from which Exalmar is the third to list. There had been no price range given for the sale, conducted through an auction rather than through a bookbuilding process, with the market roughly expecting a $100m-$200m size. “Many others in the sector are evaluating the possibility of listing,” says Jean Pierre Fournier, equity portfolio manager at Integra AFP, which has $800m in assets under management. “There is much more efficiency in the sector, following the revised quota system, which has also allowed for better margins and for consolidation led by the bigger companies,” he tells LatinFinance, referring to a 2009 change that restructured catch limits. Demand for the float came from Peru, Colombia, Chile, the US and Europe, bankers on the deal say. This follows a roadshow to the same locations. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint on Peru’s southern coast. Santander, Citi and Interbank managed the sale, the first Peru IPO since Intergroup floated in 2007, according to Dealogic.