Mexico’s equity capital markets will likely see at least three new share sales once the US presidential election is over, sources tell LatinFinance.
The tequila company filed documents in September but delayed its IPO plans because it had to resubmit financial statements with the securities regulator CNBV, one of the sources said. Jose Cuervo has hired JPMorgan and Morgan Stanley to lead the offering, with Grupo Bursatil Mexicano and Santander as the local coordinators.
Jose Cuervo and the Mexican cement maker Grupo Cementos de Chihuahua (GCC) pushed back their equity offerings last month due to uncertainty over the US elections, one of the sources said. Mexican equity investors remain worried about a potential victory for Republican candidate Donald Trump, and companies are in no rush to launch offerings until the outcome of the election is certain,the person said.
GCC’s offering comes as rival firm Cemex looks to sell its 23% stake in the company, as part of a plan to sell up to $2bn in assets by the end of 2017.
GCC’s restricted equity offering could raise $300m, but the first source said the cement maker may “struggle to get the price it wants.” With Cemex selling its shares, equity investors are reluctant to buy stocks in GCC because the company is losing the support of one of Mexico’s top cement makers, he said.
JPMorgan and Banamex-Accival are the global coordinators on the offering, while Banorte, BBVA Bancomer and Santander are the local coordinators, GCC said in a regulatory filing.
Sources involved in the trade declined to talk or did not respond to requests for comment.
Mexican building materials company Elementia is also considering a rights offering. The company said earlier this month that it had agreed to sell up to MXN4.37bn ($233m) in new shares. Elementia will use the proceeds to pay for the acquisition of a 55% stake in US-based Giant Cement from Spain’s Cementos Portland. Credit Suisse is likely to coordinate the offering, according to a person familiar with Elementia’s plans.