Mexico Homebuilder Javer Shelves IPO Citing Market Conditions

  • Company had sought to raise as much as $133 million in sale
  • Evercore, Santander and BTG Pactual were underwriters on deal

Mexico’s Servicios Corporativos Javer SAPI pulled its initial public offering after planning to raise as much as 2.3 billion pesos ($133 million) on Monday.

The homebuilder, based in Monterrey, Mexico, sent a filing to the nation’s stock exchange saying it’ll carry out the offer when “market conditions allow.” Javer, whose private-equity backers include Evercore and Southern Cross, planned to use the money raised to buy back some of its dollar bonds due in 2021. On Nov. 30, the company said it will repurchase up to $136 million of the notes for 107 cents on the dollar, up from a previous price of 104.938 cents.

Mexico’s benchmark IPC index has slipped 3.5 percent in December ahead of this week’s meeting by the Federal Reserve, when U.S. policy makers are expected to raise their benchmark rate for the first time since 2006. The peso’s 4.4 percent decline this month has compounded Mexican stock losses in dollar terms for foreign investors.

Javer, which builds the most homes in Mexico with mortgages from government-run Infonavit, was seeking to become Mexico’s eighth IPO of 2015, the most in Latin America. The deal’s lead underwriter was a unit of Evercore. Local units of Spain’s Banco Santander SA and Brazil’s Grupo BTG Pactual SA, whose chief executive officer was arrested in Brazil on Nov. 25, were also bookrunners.

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