Mexichem Set for FO

Mexichem is scheduled to price today an equity offering of more than $1bn, becoming the latest Mexican issuer to take advantage of investor appetite for the country. The industrial conglomerate is offering 260m shares, assuming a 15% greenshoe is used, in an all-primary share sale that would raise MXP15.74bn ($1.23bn) at Monday’s MXP60.53 closing price. Mexichem is raising funds for general corporate purposes, including expansion projects and working capital. Citi, HSBC, JPMorgan and Morgan Stanley are managing the international portion of the transaction, joined by BBVA on the Mexican portion. The sale follows a $1.15bn well-demanded international bond sale last month, as Mexichem continues to raise funds following the $500m acquisition of Dutch pipemaker Wavin.