Infraestructura Energética Nova S.A.B. de C.V, Sempra Energy’s Mexican subsidiary, announced pricing and other details of a private offering and a public offering intended to raise more than $1.4 billion.
The company better known as Ienova said Oct. 14 it hopes to sell 344.9 million shares of Class II single-series common stock at 80 pesos per share, which is equivalent to about $4.22 per share based on Banco de México’s published exchange rate Oct. 13 of 18.9622 pesos to $1 (U.S.).
Ienova said it plans to spend part of the proceeds to repay Sempra’s bridge financing of the subsidiary’s recent acquisition of the 50-percent stake Mexican government-owned petroleum company Pemex owned in Gasoductos de Chihuahua, a pipeline builder and operator.
The rest of the proceeds are earmarked for the Mexican subsidiary’s previously announced plan to acquire two Mexican windfarms, as well as capital expenditures and “general corporate purposes,” Ienova said in a news release Oct. 14.
Net proceeds from the share offering are estimated at 27.12 billion pesos, or $1.43 billion, after deducting underwriting discounts, commissions and offering expenses payable to the company. The sale is expected to be concluded Oct. 19.
Initial investors in the share offering announced Oct. 3 have been given a 30-day option to buy an additional 35 million shares of common stock at the disclosed price, less an underwriting discount to cover possible overallotments.
In all, the share offering represents about 23 percent of Ienova’s outstanding shares. That would rise to 24.8 percent if the 30-day overallotment is fully exercised.
As part of the offering, San Diego-based Sempra has indicated it wants to buy $350.7 million worth of the stock, giving it about 68 percent of Ienova’s outstanding shares.
Ienova is one of Mexico’s largest private energy companies. It develops, builds and operates Mexican energy infrastructure.
Sempra is a Fortune 500 energy services holding company with 2015 revenues exceeding $10 billion.