Market Awaits Pinfra FO

Mexico’s Promotora y Operadora de Infraestructura (Pinfra) had yet to price an equity follow-on late Thursday evening. The Mexican concession operator was scheduled to price 70.4m shares, including a 15% greenshoe, implying a MXP4.85bn ($380m) sale based on Thursday’s MXP68.85 closing price. The books were heard to be oversubscribed. Some 42% of the sale is destined for an international tranche. About 70% of the shares are to be secondary shares sold by members of the Penaloza family and various investment funds, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The sale also aims to increase the liquidity of the issuer’s shares, which trade relatively infrequently. The public float is to increase to 46.1% from 29.5%, with controlling shareholders ending up with 44.5% and funds linked to Grupo Bursatil Mexicano 9.4%. Credit Suisse and JPMorgan are managing the international portion, joined by Banorte-Ixe on the domestic side. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road construction and has been publicly traded since 2005. Mexico is emerging as the region’s equity hotspot following Santander Mexico’s $4bn IPO, with Mexichem scheduled for a $1.2bn-equivalent follow-on October 9 and Credito Real with a $200m-equivalent IPO October 16.