Sempra’s Ienova Seeks to Raise $1.27 Billion in New Share Offer

  • Mexican company to use funds for wind farm, pipeline purchases
  • Ienova could price follow-on share offering as soon as Oct. 13

Infraestructura Energetica Nova, the Mexico-based unit of Sempra Energy, is seeking to raise about $1.27 billion by issuing new shares to fund its recent acquisitions of the country’s largest wind farm and a 50 percent stake in a pipeline company.

Ienova, Mexico’s only publicly traded energy company, will offer 323 million shares as soon as Oct. 13 following a 10-city roadshow, according to a stock exchange filing on Monday. The offer includes upsize and over-allotment options totaling 57 million shares. That may raise between 24.5 billion pesos ($1.27 billion) and 28.8 billion pesos, according to Bloomberg calculations based on Monday’s closing share price.

The sale will be used to finance Ienova’s $375 million purchase of the Ventika wind complex, which includes the assumption of $477 million in long-term financing, and to help fund the recently approved $1.1 billion acquisition of Petroleos Mexicanos’s 50 percent in pipeline operator Gasoductos de Chihuahua, according to the filing.

Sempra, Ienova’s largest shareholder, will buy as much as $350 million worth of shares, according to the statement. The San Diego-based company said in July that it plans to develop additional projects in Mexico and will spend more than $3 billion in Latin America through 2020.

Ienova closed at 75.76 pesos per share on Monday. The company’s shareholders will meet Oct. 7 to approve the offering.

— With assistance by Dale Quinn

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