• The offering totalled MXN14.05bn, a clear sign of investor confidence in the company.
  • Despite the complex market climate, the offering generated a bid to cover ratio of 9.8x, including the greenshoe option.  A total of 32 domestic institutional investors and 11,000 equity investors took part.
  • Casa de Bolsa BBVA Bancomer continues to strengthen its position in the capital markets, underscoring its leadership as an underwriter.

Casa de Bolsa BBVA Bancomer today announced the successful placement of an initial public stock offering by the company Grupo Lala, S.A.B. de C.V. totalling MXN14.05bn on the Mexican Stock Exchange (BMV), one of the largest market launches of the year.

The transaction was well received by the investing public and further strengthens BBVA Bancomer's capacity in equity market transactions in the Mexican dairy industry.

The offering was highly successful and despite a complex market climate, the skilfully managed transaction was met by investor demand that exceeded the offer by 9.8x (including the overallotment option).  Some 32 domestic institutional investors and 11,000 equity investors participated.

Half the global offering went to international investors and half to domestic investors, and the retail segment accounted for 20% of the total allotment, while the institutional segment took up 30% of the local assignment.

In the words of Adrián Otero Rosiles, General Director of Corporate and Investment Banking at BBVA Bancomer, "We are very satisfied with the transaction because it was one of the largest handled by this Financial Group as an underwriter, and because of the confidence investors showed in it."

Otero remarked that this strong response can also be attributed to Grupo Lala's strength in the Mexican dairy industry and in other countries where it operates.

He mentioned that the structural changes now taking place in Mexico will facilitate the entry of capital flows to the country, so institutional investors are seeing Mexico as a good choice for investment.

Grupo Lala is a leading consortium in the food and beverage industry, with widely recognised brands, focused on the mass consumption market and a leader in the dairy products industry.  It operates in Mexico, its main market, and has a solid market share there; it is also developing a growing presence in Central America.  Its track record of continuous innovation in brand-name products has enabled it to consistently meet consumer's needs with products that distinguish it from its competitors and give it a leadership position in its markets.

The group has evolved from being a small company from northern Mexico that produced only pasteurised milk, to selling an extensive portfolio of brand-name, value-added products in many categories and regions, with a level of sales that makes it one of the largest dairy companies in the world.

2013: An historic year for BBVA Corporate & Investment Banking

BBVA Bancomer has a firm leadership in the corporate investment banking field.  In 2013, it has handled more than 20 debt and equity placements, like the initial public offering of EINOVA, the first in the energy sector; and placements by OHL, Inbursa, OMA, and most recently, Fibra Danhos.

BBVA Bancomer has also coordinated successful debt issues, among the most important of which have been Cementos Chihuahua; Pemex, totalling USD2.10bn; and the placement of Trust-Backed Securities Certificates from FOVISSSTE for MXN6.88bn, which was the largest mortgage-backed bond offering in Mexico and Latin America in terms of volume and issue size.

In the last twelve months (from October 2012 to September 2013), BBVA Bancomer has handled equity transactions totalling USD1.22bn, and debt offerings of USD6.19bn.



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