Banorte Trims Planned Stock Sale in Top Mexico Deal of 2013

Grupo Financiero Banorte SAB plans to raise about $2.3 billion in a share sale this month, scaling back Mexico’s biggest equity offering of the year.

The transaction, likely to be held July 16, will be for about $2 billion, plus a 15 percent overallotment option for underwriters, the company said in a filing with the Mexican stock exchange. Banorte, the country’s third-biggest bank, said June 12 it was considering raising as much as $3 billion.

Mexican companies have been delaying or cutting back the size of equity offerings after the benchmark IPC index of 35 stocks plunged last month to the lowest level since September 2011. Controladora Vuela Cia. de Aviacion SAB, the country’s third-biggest airline, is delaying an initial public offering until at least September, two people with direct knowledge of that transaction said this week.

Banorte shares fell 1.3 percent to 74.86 pesos today in Mexico City.

The bank will use the money to pay back $800 million borrowed this year to buy a stake in Banco Bilbao Vizcaya Argentaria SA’s pension fund unit, as well as to finance the planned acquisition of a stake in Seguros Banorte Generali and Pensiones Banorte Generali, according to the filing. An additional $325 million will help pay for the repurchase of a stake in the lender from the International Finance Corp.

Last week, Empresas ICA SAB, Mexico’s biggest construction company, pushed off its offering of shares in airport operator Grupo Aeroportuario del Centro Norte SAB, while industrial-park operator Corp. Inmobiliaria Vesta SAB cut the size of a planned follow-on sale.

Controladora Vuela Cia. de Aviacion, known as Volaris, had said in a regulatory filing in early June that it planned to complete the sale by the end of that month.

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