Mexican REIT Fibra Uno Rallies to 12-Week High After Share SaleChristine Jenkins
Fibra Uno Administracion SA, Mexico’s biggest real-estate investment trust, rallied to a 12-week high after a person with direct knowledge of the matter said the company sold $2.2 billion of shares yesterday.
The shares gained 3 percent to 43.32 pesos at 11:28 a.m. in Mexico City, the highest since March 20 on a closing basis.
Fibra Uno, which owns a stake in Mexico City’s tallest building, sold 696 million shares yesterday at 41 pesos each after using a “hot deal” option, according to the person, who asked not to be identified because the terms of the sale are still private. Fibra Uno had been seeking to price 580 million shares, according to filings with Mexico’s stock exchange.
“It was a pretty successful follow-on,” Marco Medina, an analyst with Banco Ve Por Mas SA, said in a telephone interview from Mexico City. “It’s responding to all the interest in these types of vehicles because of the exposure they give to manufacturing and consumption in Mexico.”
Fibra Uno will use the funds to pay for acquisitions and repay some debt, investor relations official Jorge Pigeon said in an e-mailed response to questions last month.