Ienova Surges Most in Mexico’s IPC Index on Pemex Pipeline Deal
Infraestructura Energetica Nova SAB, the Mexican unit of natural-gas utility Sempra Energy (SRE), led gains in the country’s benchmark IPC index after winning a pipeline contract from the government-controlled energy company.
Ienova, as the Mexico-City based company is known, jumped 4.4 percent to 50.43 pesos as of 11:59 a.m. local time, the most since Aug. 2. It has rallied 48 percent since its initial public offering in March. The stock was the best performer among the 35 members of the IPC index, which climbed 0.6 percent.
Petroleos Mexicanos, or Pemex as the government’s oil and gas producer is also known, said Oct. 25 that it would build a 441-kilometer pipeline stretch in partnership with Ienova. The project will have an initial investment of $1.05 billion, according to a Pemex statement. The pipeline will run south from the northern Mexican state of Nuevo Leon to San Luis Potosi.
The deal could raise Ienova’s share price by as much as 9 pesos, with a target price of 55 pesos in 12 months, according to a Credit Suisse Group AG report today. Ienova may have a stake of 25 percent to 50 percent in the project, Credit Suisse analyst Vanessa Quiroga wrote in the report.
Ienova is scheduled to report third-quarter earnings at 5 p.m. Mexico City time today.
To contact the reporter on this story: Adam Williams in Mexico City at firstname.lastname@example.org