Pinfra Offering Raises $572 Million as Road Projects Sought

Promotora y Operadora de Infraestructura SAB raised 7.4 billion pesos ($572 million) in a follow-on offering yesterday, generating cash to invest in new infrastructure projects.

The Mexican toll-road operator known as Pinfra may receive as much as 8.5 billion pesos if the overallotment option, or greenshoe, is exercised in the next 30 days. The company said in a filing with the Mexican stock exchange that it sold L shares, which have limited voting rights, at 172 pesos.

Pinfra shares declined 2.7 percent to 178.38 pesos at the close of trading in Mexico City, the biggest drop in almost seven months. They have still advanced 14 percent this year in the seventh-biggest gain on the benchmark IPC index of 35 Mexican stocks.

Mexico City-based Pinfra said on a conference call with investors and analysts June 16 that it is raising money to compete for projects under President Enrique Pena Nieto’s 7.75 trillion peso infrastructure program. It may also repay debt and invest in existing road concessions, Chief Executive Officer David Penaloza Alanis and Chief Financial Officer Carlos Cesarman said on the call.

The offering was about three times oversubscribed, a person with direct knowledge of the transaction said yesterday. The deal was handled by Credit Suisse Group AG, JPMorgan Chase & Co., Banco Bilbao Vizcaya Argentaria SA, Itau BBA and Corporativo GBM SAB.

To contact the reporters on this story: Jonathan Levin in Sao Paulo at jlevin20@bloomberg.net; Jose Enrique Arrioja in New York at jarrioja@bloomberg.net

To contact the editors responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net Jonathan Roeder

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