$ 100 million
Completed
12/1/2016
Further information
The firms began working on the IPO in the third quarter of 2014, but Javer delayed the transaction due to market conditions, including concerns about finding investors and the adverse global equity markets.
In the third quarter of 2015, Javer made some changes in the structure of the transaction to better accommodate the market. Originally, the offering was intended to be an international offering.
“Due to the turmoil in the financial markets globally and because investors in Mexico showed an interest in the company, they thought it would be best to reduce the size of the IPO and restructure it as a local deal instead of prolonging an international offering,” explained Mijares Angoitia Cortés & Fuentes partner Martín Sánchez Bretón. “So, the success of the deal was based on the company’s ability to take advantage of the opportunities in the local market and try that market,” Sánchez said.
Paul Hastings partner Mike Fitzgerald commenting on the reasons for investor interest in Mexico said: “Most US stocks trade at EPS [earnings per share] multiples that are much higher than similar companies in Mexico. So I think many investors are analyzing equity investments in Mexico as being a bargain compared to the price in the US.”
Still, Fitzgerald added, “I think that any company that is trying to do an IPO in the current market is going to have to work twice as hard to make sure that the transaction is successful and is going to have to be more flexible than has historically been the case in terms of valuation expectations.”
Rani Mehta - Journalist Latin America
Mexico
IPO
Capital markets : Equity
Real estate