Mexican Lender Launches IPO

Mexico’s Credito Real has launched an IPO targeting MXP2.22bn-MXP2.63bn ($172m-$205m), according to regulatory documents, with pricing scheduled for October 16. The specialist in payroll, group microbusiness and durable goods loans plans to sell 101m shares at MXP22.00-MXP26.00 each, indicating an MXP2.43bn transaction if priced at the midpoint. A 15% greenshoe is also possible. About 73% of the deal is planned to be primary shares, with the remainder secondary shares to be sold by investors including Nexxus Capital – the largest holder with 18.3% – and Grupo Kon. The bank plans to place half the deal in Mexico and half internationally. Proceeds are for general corporate purposes and for expansion plans. Deutsche Bank and Barclays are managing the international portion, joined by Banorte-Ixe on the domestic tranche. Targeting Mexico’s underbanked lower and middle classes, Credito Real grew by 63% during 2009-2011, and booked revenue of MXP1.0bn 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. The Mexican equity issuance pipeline is as active as it has been in years, with Pinfra set to price a $400m-equivalent follow-on Thursday and Mexichem a $1bn follow-on next week, all coming after a $4bn IPO from Santander Mexico last week.