Hotel Fibra Builds Books

Mexico’s Fibra Inn is heard with books well oversubscribed coming into today’s scheduled IPO pricing. The hotel focused Fibra real estate trust would raise MXP3.80bn ($303m) at the midpoint of its price range, assuming a 15% greenshoe is used. The issuer is offering 127m primary and 79m secondary shares at MXP17.25-MXP19.75 each. It expected about 50% of the sale to be placed internationally, according to offering documents. 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. The deal should result in a 77% public float. 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.