Santa Fe Said to Push Back Mexican IPO as Larger Offerings Loom
Stock Chart for Grupo Hotelero Santa Fe SAB de CV (HOTEL*)
Grupo Hotelero Santa Fe SAB delayed its initial public offering planned for yesterday, according to two people with direct knowledge of the decision, who asked not to be identified because they aren’t authorized to speak publicly on the matter.
The Mexico City-based hotelier backed by private equity firm Nexxus Capital SC had said in regulatory filings that it would probably raise about 3.3 billion pesos ($250 million), plus a 15 percent overallotment option for underwriters.
Investors probably passed on Santa Fe in favor of bigger issuers readying offerings, including a deal by Mexican dairy company Grupo Lala SAB (LALAB) that may raise about 11.3 billion pesos this month, according to Aldo Miranda, a trader at Intercam Casa de Bolsa SA. Mexican businesses have already raised a record $10.4 billion in equity markets this year, data compiled by Bloomberg show.
“The fact that there are other deals in the pipeline made Hotelero Santa Fe less attractive for institutional investors,” Miranda said in a telephone interview from Mexico City. “It makes sense that they would wait.”
Sigma Alimentos SA, the food division of conglomerate Alfa SAB (ALFAA), said last month it has contacted banks including Citigroup Inc. and Goldman Sachs Group Inc. about a possible IPO.
Intercam’s Miranda said the Santa Fe offering was also scuttled by a rout in Mexican stocks.
The benchmark IPC index of 35 Mexican companies fell 1.3 percent yesterday to 39,916.84, the lowest close since Sept. 6. The peso fell 0.7 percent to 13.2246 per U.S. dollar as investors awaited the outcome of a budget stalemate in the U.S., Mexico’s top export market. The U.S. government began a partial shutdown Oct. 1 after lawmakers failed to reach a budget agreement before the start of a new fiscal year.
Mauricio Cravioto, director of marketing with Santa Fe, didn’t respond to an e-mail and telephone call seeking comment on the decision to delay the IPO.
Concentradora Fibra Danhos SA, a Mexico real-estate investment trust, raised at least 5.2 billion pesos ($394 million) in a separate Mexican IPO yesterday, said two people with direct knowledge of that deal, who asked not to be named because the details remained private. The offering sold for 26 pesos a share, the bottom of a 26 peso-to-28 peso range projected by the company, the people said.
A press official for Fibra Danhos declined to comment on the results of the offering.
Danhos is the fourth Fibra, as the Mexican REITs are known, to stage an IPO this year. The BMV Fibras index, created by stock exchange operator Bolsa Mexicana de Valores SAB to track the securities, has declined 6.6 percent this year based on total return. Shares of the other three Fibras to hold IPOs this year have fallen since going public.
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