Argentina’s Supervielle Ends Country’s Two-Year IPO Drought

  • IPO marks first equity offering since Globant SA’s sale
  • Financial group raises $280 million in stock offering

Argentina’s Grupo Supervielle SA, controller of lender Banco Supervielle SA, rallied in its trading debut after raising $280 million in the country’s first initial public offering in two years. It sold the shares at the low end of its projected range.

The American depositary receipts climbed 3.6 percent to $11.40 at 12:08 p.m. in New York after the bank sold them for $11 each and issued common shares in Argentina for $2.20 on Wednesday. The bank had aimed to raise as much as $311 million by selling the ADRs for as much as $13 and local shares for as much as $2.60, according to a U.S. filing.

Supervielle’s sale marks 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. 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 a May 10 filing.

“We saw enormous interest,” Supervielle said in an interview with El Financiero Bloomberg TV’s Karla Palomo. “The Argentina story is fantastic. The recent regulatory changes have awakened the interest from investors, and we’ve also seen growing interest in our company.”

President Mauricio Macri has overturned several of his predecessors policies in an effort to jumpstart the economy and promote foreign investment. Since taking over in December his government has removed most export tariffs, reduced subsidies on utilities and ended a 15-year standoff with bondholders.

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

Bank of America Corp. and Morgan Stanley organized the sale. Raymond James Financial Inc. was co-manager.

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