LatinFinance - July 2013 - 7

Equity

Change of pace

conglomerate was looking at an 8.05 billion real transaction at the
The equity capital markets pipeline was refilling after a busy
midpoint of its price range. It may try again later in the year.
March-April window that finished with bangs including Brazilians
Brazil’s Iguatemi raised 432 million reais in a follow-on
BB Seguridade raising 11.48 billion reais ($5.74 billion) and
in early June, coming at a 2.2% discount. The shopping mall
Smiles raising 1.13 billion reais – though the market conditions
operator offered 18.4 million primary shares at 23.50 reais each,
in early June were less than encouraging. The year’s busy
to raise funds for greenfield projects, shopping center upgrades
start underscores the improvement in conditions compared
and acquisitions.
to the previous two years. Latin
Other Brazilians on the way
issuers raised $19.49 billion from
ECM rank by volume, year to June 14
included airline Azul and renewable
40 transactions through June 7,
Morgan Stanley returns
energy developer CPFL Energia,
compared to $8.52 billion from 35
which were lining up debuts. Eike
Rank
Bookrunner
Value $m
# Deals
during the corresponding period in
Batista’s MPX was preparing a follow1
Itaú
2,499
14
2012.
on to go along with an agreement
2
Credit Suisse
2,421
17
Whether the momentum will
with Germany’s E.ON to buy
3
BTG Pactual
2,226
17
continue remains to be seen. Many
additional shares in the generator.
4
Citi
1,632
6
issuers, particularly Mexicans, joined
In Mexico, Fibra Hotel returned
5
Santander
1,392
7
the pipeline in May and June, just
to the markets to raise 4.89 billion
6
Bradesco
1,141
9
as global conditions were becoming
pesos ($382 million) at the end of
uncomfortable.
7
JPMorgan
1,073
6
May. The transaction was six times
EM sell-offs shut debt capital
subscribed, and was priced at a 5.6%
8
Banco do Brasil
773
3
market primary issuance in the first
discount. The real estate fund sold
9
Banco Votorantim
662
2
half of June, though it was unclear
196 million primary shares, at 24.95
10
Morgan Stanley
636
6
what the effect, if any, would be on
pesos each.
Total
19,800
41
the equity deals being prepared.
Another hotel operator, City
Source: Dealogic
Bankers remained optimistic, though
Hoteles, priced a 2.92 billion peso
currency slides meant more of a
IPO in mid-June, landing at the
challenge for issuers to meet their
Softer market
bottom of its 24 to 29 peso pricing
targets.
Performance of M&E LatinFinance Index
range.
Banorte, looking for $3 billion
“The macroeconomic growth
150
M&E LF Brazil Stars index
in a follow-on to strengthen its
in Mexico continues to offer a
140
capital base following a series
strong demand for real estate
130
of acquisitions, was among the
assets and inflows for the Fibras,”
issuers lining up in mid-June.
says Luis Rodríguez, head of
120
In Colombia, Grupo Aval was
research at Finamex.
110
preparing a long-awaited followIn addition to Banorte, the
100
on representing the debut of an
Mexican pipeline included
ADS portion.
90
road operator OHL Mexico,
airline Volaris, and industrial
80
property developer Vesta. Airport
IBovespa index
Base=100, 12/30/09
70
Cementos Argos pulled in less
operator OMA and Inbursa
than it was looking for in a followwere preparing all-secondary
on sale, raising 1.61 trillion pesos
follow-ons as shareholders ICA
($854 million) in early June.
and CaixaBank, respectively, sold
Source: Management & Excellence SA
The transaction was described
stakes in the companies.
as an IPO of preferred shares,
as the company already had common shares trading. Using the
bookbuilding process familiar to the rest of LatAm but still just
Peru looked set to get on the board as well, as builder Graña y
catching on in Colombia, the unit of Grupo Argos priced the deal
Montero planned an IPO of ADS shares in the US for early July,
at the bottom of a 7,700-9,300 peso range.
gunning for more than $400 million.
Receiving about 1.5 times demand, Cementos Argos sold 133
Uruguay was on track to get its first IPO since 2006. Union
million shares to local investors and 76 million to international
Agriculture Group listed its shares in May, with the capital raising
buyers in the form of ADRs, but fell short of a target of more than portion expected by August.
2 trillion pesos.
It was targeting at least $50 million, with more than 90%
With markets backing up, Votorantim Cimentos pulled its
likely headed for the country’s pension funds, and the rest to retail
IPO in mid June. The cement business of Brazil’s Votorantim
investors. LF
1/31/10
3/31/10
5/31/10
7/31/10
9/30/10
11/30/10
1/31/11
3/31/11
5/31/11
7/29/11
9/30/11
11/30/11
1/31/12
1/1/04
5/30/12
7/30/12
11/30/12
1/31/13
3/28/13
5/31/13

Cementing less

Peru, Uruguay, too

July 2013

LatinFinance 7

LatinFinance - July 2013

Table of Contents for the Digital Edition of LatinFinance - July 2013