Grupo Supervielle IPO

Argentina’s return to financial markets opened the door to a swathe of domestic institutions to look internationally to raise capital. Grupo Supervielle used that opportunity to impressive effect with a global equity sale. 

The financial institution was the first Argentine company to go public last year, and the first Latin American to list on the New York Stock Exchange
since Mexico’s Elementia
in July 2015.

Renewed international interest in Argentina helped the share sale advance. The deal was three-times subscribed and over 90% of the 71 investors that put in orders were global buyers. Ultimately, 62% of the shares were placed with US investors, 24% with Europeans and 14% with Latin American accounts.

Leads balanced the allocation between long-only buyers and hedge funds, says Alejandra Naughton, the firm’s chief financial officer. 

“Most of the accounts did not own Argentine shares, so this was a source of pride for us, given they made a conscious decision to invest in Argentina.”

Supervielle issued 23.5 million American Depositary Shares at $11 apiece, and 9.53 million
common shares at $2.20 each. It later executed the greenshoe, growing the deal by 15% to bring the size to close to $323 million. 

The company could have priced the ADS closer to
$13, but wanted to attract a larger investor base that would stick with the
company for future equity offerings, Naughton says. 

“Our loan portfolio has multiplied by 21% since 2001 and
our distribution network by 14%,” Naughton says. “The global markets were clear
on what was happening in Argentina and this was an opportunity to capitalize on
that momentum.”

Since pricing the offering in May, Supervielle’s stock has risen, peaking in September at $15.40, before trading at $14.45
in mid-November.

Naughton says that by going public, Supervielle
opened itself up to new methods of capitalization and financing in local and international markets. LF

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Date: May 2016 

Size: $323m

Supporting banks: Bank of America Merrill Lynch, Morgan Stanley, Raymond James

Supporting law firms: Bruchou Fernandez Madero & Lombardi, Cleary Gottlieb, Davis Polk, Errecondo Gonzalez Funes

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