Ecuadorean Dairy Plans IPO

Holding Tonicorp, an Ecuadorean dairy producer, is preparing an IPO to raise $74m-$87m, according to a broker managing the transaction. In what appears to be the country’s first IPO in at least five years, Tonicorp plans to float 30%-35% of itself, or 12.4m-14.4m shares, at an offering price of $6.00 each. The IPO is set to open on Wednesday. While bankers have been forecasting that borrowers are unlikely to come with more IPOs this year, they may have overlooked how small markets like Ecuador’s remain somewhat insulated from the broader turmoil abroad. Local brokerage Inmovalor Casa de Valores is managing. Tonicorp, controlled by the Alarcon family, owns Industrias Lacteas Toni, and also Plasticos Ecuatorianos and Dipor, which produce, package and distribute Toni’s dairy products. Combined sales from the 3 companies are forecasted at $274m next year, up from a projected $252m this year, and are expected to reach $380m by 2016.