Credito Real Plots Share Listing

Mexico’s Credito Real has joined the list of prospective Mexican equity issuers and is targeting an IPO, according to regulatory documents. The specialist in payroll, group microbusiness and durable goods loans plans an offering with US and Mexican tranches, but does not indicate size or timing. The sale is to include primary shares as well as secondary shares sold by investors including Nexxus Capital – the largest holder with 18.3% – and a fund linked to Banco Invex. Deutsche Bank and Barclays are managing the international portion, joined by Banorte-Ixe on the domestic tranche. Proceeds are for general corporate purposes. Targeting Mexico’s underbanked lower and middle classes, Credito Real grew by 63% during 2009-2011, and booked revenue of MXP1.0bn ($78m) in the 12 months to June 30. Founded in 1993, it has funded itself through investment such as Nexxus’, in 2007, and in the local debt markets. Last year it acquired payroll lender Credifel. Credito Real was heard considering an IPO since at least last year, but may find conditions more receptive to Mexican issuers if strong economic forecasts continue for Mexico and larger equity deals from the likes of Santander Mexico, Mexichem and Pinfra go well.