LatAm equity deals hoping for take-off

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.

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 offering price.

Mexico’s 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