Fibra Inn Launches IPO

Mexico’s Fibra Inn has launched an IPO targeting more than MXP3.5bn ($274m), with pricing scheduled for March 13. What would be the fourth entrant into Mexico’s real estate trust asset class plans to sell 127m primary and 79m secondary shares at MXP17.25-MXP19.75 each, according to regulatory documents, indicating a MXP3.80bn sale at the midpoint and assuming the exercise of a 15% greenshoe. The issuer expects about 50% of the sale to be placed internationally. The secondary portion includes shares to be sold by Indigo Capital, which is to keep a small holding, and Citigroup Venture Capital International, which exits completely. Proceeds will be used to purchase assets to add to the trust’s portfolio, which initially includes eight Holiday Inn and Hampton Inn hotels in seven cities throughout Mexico, and options to buy six more. As with Concentradora Fibra Hotelera – which raised MXP4.14bn through the first hotel-focused Fibra IPO last year – the properties offer a play on the steady growth expected for business travel between Mexico’s cities, rather than the more cyclical tourism industry. Actinver, Credit Suisse and Santander are managing. The deal should result in a 77% public float.