OHL Mexico Said to Raise About 7 Billion Pesos in Follow-On SaleJonathan Levin
OHL Mexico SAB, the Mexican unit of Spanish construction company Obrascon Huarte Lain SA, raised about 7 billion pesos ($525 million) in a follow-on offering yesterday, according to two people with direct knowledge of the deal.
The total includes an overallotment option for underwriters, said the people, who asked not to be named because the details are still private. The price of 29 pesos per share represents a 2.8 percent discount to yesterday’s closing value of 29.84 pesos.
Alberto Guajardo, an investor relations official with Mexico City-based OHL Mexico, didn’t respond to phone calls and e-mails seeking comment on the offering price.
OHL Mexico planned the share sale to replenish cash, finance its investment plan and pay some debt, according to an investor presentation posted on the website of the Mexican stock exchange.
OHL Mexico builds and helps operate infrastructure in Latin America’s second-biggest economy including toll roads, bridges and the Toluca airport close to Mexico City, which the company says will benefit from spillover as the capital’s airport nears maximum capacity.
The construction company sold the shares as emerging-market stock indexes plunged after the U.S. Federal Reserve signaled on June 19 it may pare monetary stimulus. Mexico’s benchmark IPC index of 35 companies has plummeted 4.9 percent in the past two days, the worst rout since September 2011, and the nation’s currency depreciated 3.5 percent against the dollar.