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Two Latin American Offerings Prepare to Test Investor Appetite

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8:31 pm
Jul 8, 2013

By Matthew Jarzemsky

It may be too early to say “adios” to share offerings by Latin American companies, despite a big slide in the region’s stocks this year.

Peruvian bank Grana y Montero set terms late Monday for its initial public offering, saying it expects to sell 16.3 million American depositary shares for $19.70 to $23.30 each, or some $350 million worth. It plans to list on the New York Stock Exchange. A company typically discloses its pricing expectations to kick off the home stretch of the IPO process, when executives and bankers go on the road to pitch the shares to potential investors.

Meanwhile, Mexican construction firm Empresas ICA SAB is taking another whack at selling a stake in airport operator Grupo Aeroportuario del Centro Norte SAB. ICA plans to sell 17.25% of the company, down from the 23.75% it had planned to offer in a deal it pulled due to adverse market conditions last month, according to a press release.

Latin America deals have had a bumpy ride amid a selloff in emerging markets stocks this year. The MSCI Latin America index has tumbled 20% year-to-date, in a selloff that accelerated the past two months.

Brazil’s Bovespa index has fared even worse, tumbling 26%. Amid the tumult, Sao Paulo-based building materials maker Votorantim Cimentos SA postponed a planned $4.8 billion IPO last month. The deal would have been the largest U.S.-listed debut this year.

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Taken from The Wall Street Journal: http://blogs.wsj.com/moneybeat/2013/07/08/two-latin-american-offerings-prepare-to-test-investor-appetite/

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