Banorte Drops Ahead of Biggest Stock Offering: Mexico City Mover
Grupo Financiero Banorte SAB shares fell for a third straight day as Mexico’s third-largest bank prepares to sell as much as $2.3 billion of stock in the country’s biggest equity offering this year.
The shares fell 0.1 percent to 72.28 pesos at 11:30 a.m. Mexico City time, after dropping 1.2 percent in the two previous sessions. The country’s benchmark IPC index fell 1.8 percent, the worst performance among 18 major world equity indexes tracked by Bloomberg.
Banorte is raising money through a follow-on share sale to finance acquisitions at a time when Mexican companies have been delaying or scaling back equity offerings. The benchmark IPC index of 35 stocks plunged last month to the lowest level since September 2011, and is down 9.4 percent this year. Banorte pared its planned offering earlier this month from a previously targeted $3 billion.
The Mexico City-based company, the country’s biggest bank by outstanding loans, now plans to sell $2 billion of stock, with a 15 percent overallotment option for underwriters, according to a July 3 filing.
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