LatAm equity deals hoping for take-off
OMA’s follow-on has demonstrated sellers may need to lower expectations, but hopefuls in the pipeline are pressing ahead.
OMA's follow-on has demonstrated sellers may need to lower
expectations, but hopefuls in the pipeline are pressing
If things go according to plan for the likes of Banorte, CPFL
and Graña y Montero, LatAm's equity market could
continue to show up the bond market in July.
After delaying a deal by one week and shrinking it, Mexico's
Aeroportuario del Centro Norte (OMA) was able to
price the sale of shares held by Empresas ICA this week.
The deal is part of the builder's plan to raise cash as its
project pipeline slows. Banorte is pressing ahead with its
planned follow-on targeting more than $2 billion-equivalent
next week. The Mexican lender needs to raise capital, and is
betting now might be better than later in the year and that
investors are still buying into Mexico's growth story.
Shares of Inbursa, Vesta and OHL Mexico have traded up since
their respective follow-ons in June. Of last month's Mexican
deals, only the IPO of Hoteles City has dropped below its
Fibra Shop is also pressing ahead with the IPO of a
shopping center-focused Fibra, raising $400m July 23. In
another growth story play, Peru's Graña y Montero has
launched what would be the
debut of its US ADS shares.LF