Mexican building materials company Elementia began trading on the Mexican Stock Exchange (BMV) on 10 July under the symbol “ELEMENT”. The company, which recently acquired Lafarge’s share in its cement joint venture, offered 231.2 million shares (including the overallotment option) during its IPO at Ps.17.00 per share and the book was significantly oversubscribed.
The global public offering of shares will be 100% primary and the proceeds will be used to finance investments to expand cement production capacity within the next 24 months and to make the final payment of a recent acquisition. The offering took place in Mexico via the BMV, in the US via Reg. 144A, and in other countries via Reg S.
Total proceeds from the offering amounted to US$249 million (approximately Ps.3.9 billion). The company has granted the underwriters a 30-day option to purchase additional shares at the IPO price. The deal was allocated 81% in Mexico and the remaining in the international markets.
Credit Suisse, Morgan Stanley, and Citi acted as Global Coordinators, while HSBC, Grupo Financiero Santander, BBVA Bancomer, Inbursa and BX+, acted as joint book-runners for the offering.
Adapted from press release by Katherine Guenioui