The shares climbed 4.5 percent to 3.45 soles at 2:43 p.m. in Lima. The port operator sold 34.8 million shares at 3.30 soles each yesterday in a $42.7 million sale managed by Credibolsa SAB.
An attempt to sell the shares last month at 4.70 soles was unsuccessful. Proceeds will help prepay part of an $85 million loan from Goldman Sachs Group Inc. (GS) and fund a $250 million expansion of the northern coastal port of Paita. The IPO was kept under a $100 million minimum for pension funds, allowing Andino to focus on individual investors who typically keep trading volumes higher than buy-and-hold institutional investors.
“There was uncertainty in the first attempt to go to market regarding the price among investors who felt the price didn’t have an appropriate discount,” Credibolsa SAB Chief Executive Officer Jorge Monsante said today in an interview in Lima. “The decision not to involve pension funds created additional difficulties.”
Mutual funds and insurance companies in countries including Chile and Colombia accounted for 30 percent of shares bought in the IPO, Peru’s first since fishmeal producer Pesquera Exalmar SAA (EXALMAC1) raised $100 million in November 2010, Andino Chief Executive Officer Carlos Vargas said. Peruvian insurance companies and individuals bought the remaining 70 percent.
Andino, which initially expected to raise about $60 million from the IPO, also plans a $100 million debt offering to finance the upgrade of five regional airports and the construction of an air cargo facility for Lima’s Jorge Chavez Airport.
“Obviously we’d have liked more,” Vargas said today in an interview at the Lima Stock Exchange. “But with the IPO proceeds and our upcoming bond sale, our investment projects are financed.”
Mining, construction and agricultural companies may sell shares for the first time this year to fund expansion projects, Francis Stenning, chief executive officer of Bolsa de Valores de Lima, which operates the exchange, said in a Dec. 20 interview.
Heavy equipment distributor Ferreyros SA announced plans to sell new shares this quarter, while cement producer Cementos Pacasmayo SAA said it will list American depositary receipts in New York on Feb. 7. Peru’s government plans to sell stakes this year in state companies Electroperu SA and Petroleos del Peru on the Lima exchange, according to Hector Rodriguez, director of state investment promotion agency Proinversion.
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