Sempra Mexico Launches IPO

Sempra Energy Mexico, or Infraestructura Energetica Nova (IEnova) as it is to be known going forward, has launched its IPO, targeting MXP6.98bn ($551m) in a March 21 pricing. The Mexican unit of US-based Sempra energy plans to sell 218m primary shares at MXP30.00-MXP34.00, according to a prospectus, indicating a MXP6.98bn deal at the midpoint, or MXP5.69bn at the bottom of the range, where non-Fibra Mexican IPOs have been pricing this year. The total assumes a 15% greenshoe. The sale will represent a 17%-19% float post-IPO. The IPO is to be the country’s first public equity offering in the energy sector, raising funds for general corporate purposes, investments and expansion. IEnova has about $1.35bn in project needs, including a 25-year contract to build and operate a pair of gas pipelines in the state of Sonora. Citi, Credit Suisse and Deutsche Bank are managing the local and international portions, joined by BBVA Bancomer on the domestic tranche. IEnova operates five gas pipelines and a regasification terminal in Mexico, and derives about 60% of its revenues from CFE contracts. The issuer booked $330m in Ebitda last year, and $373m in 2011. It raised MXP5.2bn in 2018 and 2023 domestic bonds last month, giving Mexico its first local bond deal by a non-government energy sector entity.