- Stock extends Tuesday's 36% advance, rises most on IPC
- Reports of potential Martinez role are seen fueling gain
Empresas ICA SAB, the Mexican construction company that defaulted last month on $1.35 billion of bonds, surged for a second day amid speculation that the builder may receive support from financier David Martinez.
Shares jumped 4.5 percent to 4.62 pesos at 1:11 p.m. in Mexico City, adding to an advance of 36 percent on Tuesday. The stock is now trading higher than when the company first missed an interest payment at the end of November.
Columnist Dario Celis wrote in Excelsior newspaper for a second day that Mexican financier Martinez may be preparing to invest in the Mexico City-based builder. ICA, which didn’t respond to request seeking comment, said in a filing late Tuesday that it doesn’t yet have a restructuring or capitalization plan. An official at Martinez’s Fintech Advisory Inc. said the businessman and the company wouldn’t comment on any topic.
“The market’s continuing to speculate about this possibility, that an interested investor could enter into ICA,” said Gerardo Cevallos, an analyst at Vector Casa de Bolsa who recommends selling ICA. “It’s a rumor. Nothing has been confirmed.”
Last week, ICA said that Orlando Loera, a former Bank of America Corp. executive who was appointed in December, was being replaced as chief restructuring officer. ICA is working on a restructuring plan as it struggles to stay afloat amid government cutbacks on infrastructure spending and a plunge in Mexico’s currency that makes the builder’s dollar-denominated debt more expensive to repay.
The company’s $500 million of overseas notes due in 2021 rose 0.12 cent to 16.65 cents on the dollar.