Latin Finance - March/April 2012 - 8

Equity

Andean Spotlight

March. The issuer was relying on the strong management – exBTG Pactual partner Pedro Guimarães is chairman and former In an overall slow start to 2012, Peruvian issuers outshone the TAM VP Paulo Castello Branco is CEO – to attract buyers and rest, coming with the region’s ﬁrst IPO and a US ADR debut. raise funds for expansion within and outside of Brazil. More Peru’s Cementos Pacasmayo raised $264.5 million in a New established industry name CVC is also expected to IPO this year. York equity debut follow-on, which was essentially an IPO given Barclays, Credit Suisse, Flow Corretora and Santander were the shares’ relative illiquidity in Lima. It may have come at the managing the sale. bottom of a $11.50-$13.00 range, but the 20 million ADR deal Seabras, a spino of Norway’s Seadrill, was in a slightly gave investors a chance to play Peru’s growth story. Pacasmayo, safer boat, as part of a publicly-traded international operation part of the Hocschild group, is raising that could be used to gauge funds for expansion. JPMorgan and ECM Rank by Volume, Year to February 17 valuations. Investors also crave Santander managed the transaction. Bancolombia leads chances to play the add-on oil Though relatively small, Andino services space. Despite demand for Rank Bookrunner Value $m # Deals Investment Holding earns the the o ering, the issuer was forced to 1 Bancolombia 625 1 distinction as the ﬁrst LatAm IPO in delay the transaction after it reached 2 JPMorgan 332 2 2012, raising 116 million soles ($43 an agreement with Petrobras. 3 BTG Pactual 265 2 million) after selling 35 million shares Among other things, this required 4 Celﬁn Capital 214 1 at 3.30 soles each. Banco de Crédito del changes to its corporate structure, Perú managed the sale. 5 Citi 129 1 and the company was unable to Bancolombia gave the region its 5 Santander 129 1 do this and still carry out the IPO ﬁrst large deal of the year, raising just 5 BBVA 129 1 with its third quarter numbers, over $900 million in a local o ering it explained. A reﬁling and April 8 UBS 102 1 and subsequent New York ADR sale. pricing is now the plan. Seabras had 8 BofA Merrill Lynch 102 1 UBS, Bank of America Merrill Lynch aimed to raise 1.44 billion reais for 10 Bco Crédito del Perú 43 1 and JPMorgan led, while Bancolombia acquisitions and other investments Total 2,072 7 managed the local sale. as it looks to cover a wider range of Source: Dealogic Colombia’s Construcciones El oil ﬁeld services in Brazil. Pactual, Condor was readying an IPO to Morgan Stanley and Citi are price as soon as March, and raise managing the deal. Performance of M&E LatinFinance Index $80-$110 million-equivalent Still trouncing the Ibovespa Others in the Brazilian through an expected 15%pipeline include a spino of 120 20% ﬂoat, via Bancolombia. A Spanish infrastructure company M&E LF Index $100 million-plus-equivalent Isolux and pharmacy Pague 110 follow-on from Acerias Paz del Menos. Outside of Brazil, talk Río, a steelmaker that is part of of a restart in Santander’s 100 the Brazil’s Votorantim group, plans for o erings of Argentine could follow. In Peru, Empresa Santander Río and Santander 90 de Generación Eléctrica del Sur Mexico has surfaced, on the (Egesur) has been authorized to back of selldowns at its other 80 publicly list shares, and Petroperú units in the region. In Chile, was looking for advisors to help Cencosud plans a follow-on. IBOVESPA Index 70 plan a public o ering sometime Mexico’s Grupo Alfa made this year. initial ﬁlings in January for an IPO of its Alpek Petrochemichals subsidiary. The Brazilian new-issuance Details are still unclear, but market is picking up where it Source: Management & Excellence SA Mexican bankers hoped a blueleft o last year, with the ﬁrst chip name like this one could two planned IPOs of the year reopen that country’s market. Credit Suisse, Citi, HSBC and being postponed. Brasil Travel Turismo e Participações has been Morgan Stanley are managing. LF postponed indeﬁnitely, while Seabras Serviços de Petroleo is reshu ing its papers for a reschedule expected in April. UPDATE > Tourism industry rollup Brasil Travel was planning to raise up to 1.21 billion reais, in a deal seen as aggressive given that For daily ECM news, see www.latinﬁnance.com the company was only cobbled together from 35 businesses last

Same Old Brazil

8 LATINFINANCE

March/April 2012

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Latin Finance - March/April 2012

Table of Contents for the Digital Edition of Latin Finance - March/April 2012