Jamaican, Brazilian to test ECM Appetite for Smaller Sales

Jamaica’s National Commercial Bank (NCB), targeting $225m, and Brazil’s Linx, targeting $220m, are each scheduled to price equity transactions today. After larger deals this month for the likes of Fibra Uno and Estacio, the pair will offer an indication of how buyers – particularly in the international space – look at less liquid issues. IT provider Linx will bring the first Brazilian IPO of 2013, following two years of mostly disappointing small debuts from Brazilians. The issuer is betting its status as a provider of software specifically to Brazil’s retail sector will boost interest. It is offering 19.6m shares, assuming a 15% greenshoe, at BRL23.00-BRL27.00 each, according to regulatory documents, raising BRL490m ($246m) at the midpoint. The total includes 6m secondary shares to be sold by a private equity fund linked to Itau. Linx is seeking to raise funds for acquisitions and for working capital. BTG Pactual, Credit Suisse, Itau and Morgan Stanley are managing the sale. Meanwhile, Jamaica’s National Commercial Bank (NCB) is to hold an equity follow-on representing the debut of its ADRs in the US, reviving a process it initiated in May of last year. On offer are 16m ADRs, representing 804m common shares, at $13.00-$15.00 each, indicating a $224m transaction if done at the midpoint. The bank’s common shares, listed in Jamaica and Trinidad & Tobago, closed at JAD20.00 ($0.22) Tuesday. Of the total, 3.6m ADRs are secondary shares to be sold by Chairman Michael Lee-Chin, who should see his stake in the bank go from 64.0% to 43.6%. NCB is raising funds for general corporate purposes, including organic growth and possible acquisitions. JPMorgan and Macquarie are managing the sale. Thursday should see a return to bigger size transaction, with the $1bn IPO of Mexico’s Grupo Sanborns and $600m debut of Brazil’s QGOG Constellation.