Mexican Lender Readies IPO

BanRegio, a Mexican bank focused on lending to small and medium-sized businesses, is planning an IPO according to a regulatory filing. Grupo Financiero, the holdco for BanRegio, plans to sell 86m primary shares while its controlling shareholders plan to offer 30m secondary shares. If a 15% greenshoe is exercised, the transaction would represent a 34% stake in the bank. BanRegio does not give the total expected size or the timing of the sale. It is raising funds to expand operations. Banamex and BBVA Bancomer have been hired to manage the sale. BanRegio had MXP53.5bn in total assets at year-end 2010, up 12.3% from 2009, it says. Corporate loans constitute 80% of its MXP24bn loan portfolio, with a stated focus on small and medium-sized businesses. Founded in Monterrey in 1949 by Manuel Santos Gonzalez as Banco Regional del Norte, it is present in 13 Mexican states in the North and Center of the country. With only Aeromexico going public so far this year, Mexican debutants are lining up hoping to top last year’s MXP18.08bn total from 4 deals. Fellow bank Credito Real is also expected to list for at least MXP3bn this year, through UBS, Morgan Stanley, BBVA and Ixe. Homebuilder Javer plans to raise some $300m equivalent, with Bank of America Merrill Lynch and Credit Suisse heard close to the mandate. Dairy Grupo Lala is heard picking JPMorgan and Morgan Stanley for its IPO team that should also include Mexican banks. Other Mexican companies in the IPO pipe include airline Volaris and theatre operator Cinepolis.