Argentina's Supervielle Prepares to Raise $190 Million in IPO

  • Bank looks to sell shares in New York and Buenos Aires
  • Equity market has shriveled since gaining "frontier" status

Argentina’s Grupo Supervielle SA, controller of lender Banco Supervielle SA, is seeking to raise about $190 million in what is set to be the country’s first initial public offering since President Mauricio Macri took office.

The bank expects to sell American depositary receipts for $11 to $13 each and issue common shares in Argentina for $2.20 to $2.60 each, according to a U.S. regulatory filing. The company first registered to sell the shares on Jan. 6 and has said the proposed sale will happen "as soon as practicable" after the filing becomes effective. The sale is being organized by Morgan Stanley, Bank of America Corp. and Raymond James Financial Inc.

A sale by Supervielle would be Argentina’s first foreign equity offering since Globant SA in 2014 and its first local equity offering since Petrolera Pampa SA in 2013. The company is controlled by the Supervielle family, which entered the Argentine banking sector in 1887, and controlling shareholder Julio Patricio Supervielle will own 62 percent of total capital stock and 85 percent of voting rights after the global offering, according to the filing.

Equity trading in South America’s second-largest economy has shriveled since 2009, when it was downgraded to “frontier” market status, the lowest classification by index creator MSCI Inc., due to capital controls that Macri lifted in December, his first month in office, after pledging to restore growth by opening up the country’s markets and luring investors.

Another financial institution, brokerage Puente, has announced it also plans to do an IPO in 2017 in either London or New York.

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