Ideal Shares Jump On Primary Price

Impulsora del Desarrollo y El Empleo en America Latin (Ideal) saw its stock price leap 22.8% Monday to close at MXP18.78 after it announced plans to raise MXP6.14bn through the sale of new shares at a minimum of MXP22.00 each. The Mexican infrastructure specialist controlled by billionaire Carlos Slim, had already unveiled details about the follow-on that will include both primary and secondary sales, but the minimum MXP22.00 price clearly excited the imagination of investors just as the company’s shareholders also approved the transaction which is expected to reach MXP9.20bn ($775m) in size. Aside from the primary portion, the offering will include secondary shares sold by the Carlos Slim foundation that would make up one-third of the total sale. Proceeds from the primary portion are slated for the company’s growth. A 15% greenshoe is also available, which could bring the offer to MXP10.58bn. Banamex and Inbursa are managing the sale. The timing has not yet been determined, according to a banker on the deal.