BBVA leads CEMEX LatAm IPO in the Colombian Stock ExchangeNovember 16, 2012
On November 7, 2012, BBVA, acting as Joint Global Coordinator and Joint Bookrunner, successfully priced a $1,150 million initial public offering for CEMEX LatAm Holdings ("CLH") in the Colombian Stock Exchange. CLH starts trading today, November 16, 2012.
CLH, a wholly-owned subsidiary of CEMEX, is a leading company engaged in the production, distribution, marketing and sale of cement, ready-mix concrete and aggregates in Colombia, Panama, Costa Rica, Nicaragua, Guatemala and Brazil. As of 2011 year-end, the Company reported a total revenue of approximately US$1,270 million and an adjusted EBITDA of approximately US$379 million.
CLH´s IPO has been a milestone transaction in the Colombian equity market: first transaction priced through book-building process; and largest international demand raised in a Colombian equity offering.
IPO proceeds (100% primary offering) used to pay down debt owned to the parent Company. After the Offering, CEMEX Mexico controls 70,5% of CEMEX LatAm Holdings.
The Offering was launched on October 19, 2012 with a price range of 11,000 to 13,500 COP (Colombian pesos) per share. Management roadshow took place from October 22 to November 6, executing over 175 meetings with institutional investors. Books closed on November 6, and set the Offering price at the mid point of the range (12.250 COP per share), Order book 2,1x oversubscribed and highlighting top quality and diversified investors.
This transaction reinforces BBVA´s credentials in Equity Capital Markets. Since 2012, BBVA has executed the following European equity transactions, Telefónica Deutschland IPO (€1.449 Mn), Rights Issues of UniCredit (€7.499 Mn), Banco Sabadell (€903 Mn), BES (€1.016 Mn) o Peugeot (€999 Mn), or Repsol ABB (€1.364 Mn). In Latin America: Grupo Financiero Santander México IPO (US$4.111 Mn) or the capital increases of Cencosud (US$1.265 Mn), Fibra Uno (US$701 mMn) or Mexichem (US$1.217 Mn).
Coordination and cooperation among different teams and geographies within BBVA (Equity Capital Markets EMEA and Mexico; Corporate Finance Colombia; and Equity Sales teams in Europe and LatAm), has been essential in the success of offering.