Search Results for: Compartamos

Nearly one year since the well-publicized and successful IPO of Banco Compartamos, its stock has not maintained its initial and sizable gains. Compartamos is Mexico’s largest microfinance bank, the first “home-grown” microfinance institution to complete an IPO, and the continued subject of debate within the microfinance industry.

Financial Times: “Thriving industry is proof the poor can, and do, save.”

Over the past 6 weeks we have been keeping you up to date on the ongoing debate over the IPO of Mexican microfinance institution (MFI), Compartamos. This has included extracts from the Yahoo online ‘microfinance practice group’ discussion (click here to sign up), moderated by Mr. Chuck Waterfield. Below we quote extracts from a comment posted by Mr. Vineet Rai. Mr. Rai is currently chief executive officer of Aavishkaar India Micro Venture Capital Fund and co-founder and executive director of Intellecap, an Indian consultancy firm (see recent who’s who article on microcapital).

Continue reading “MICROCAPITAL STORY: Further Extracts From the Microfinance Practice Group Debate on Compartamos IPO åö Vineet Rai”

As we reported on Friday, Compartamos, a Mexican microbank, gave an initial public offering on Friday in both Mexico and the USA. Below is an excerpt from the Reuters news agency (which can be seen in full here);

“MEXICO CITY, April 20 (Reuters) – Shares of small Mexican bank Compartamos, which specializes in lending to mom-and-pop businesses, surged as much as 34 percent in their $407 million stock market debut on Friday.

Owners of Banco Compartamos, which means "let’s share" in Spanish, sold about 30 percent of the bank, spokeswoman Luisa del Castillo told Reuters.

More than 80 percent of the offer was placed in New York, with the rest on Mexico’s stock exchange, according to a company release. Mexican shares of Compartamos jumped as high as 53.53 pesos after the company priced the offer at 40 pesos per share. In afternoon trading the stock eased back slightly to 52 pesos.

Compartamos said it sold 111,572,532 shares, with an over allotment provision of 16,735,880 shares. It was unclear whether banks managing the offer exercised the over allotment, worth about $61 million.”

Thanks to Gray Ghost Funds for passing along this April 19 except from Latin Finance Daily. Finally, the big news is public:

“Mexico’s Banco Compartamos is set to become the first Latin American microfinance institution to raise equity capital when it prices an IPO on the Mexican Bolsa today, Thursday. Carlos Danel, co-executive director at Compartamos tells LatinFinance that the offering of secondary shares will allow some shareholders to partially monetize their stakes in the bank. The offer, which comprises an international 144a Reg S tranche and a Mexican retail tranche, should price in the range of 30 to 40 pesos a share, and could raise as much as $400 million, according to a source close to the deal. Credit Suisse is global coordinator and bookrunner of the 144a Reg S tranche, pitched at qualified institutional buyers in the international market. Banamex and Banorte are handling sales to Mexican retail. Danel, who has been meeting with investors in Mexico, Brazil and Europe, says the price range has already been revised upwards from 28 to 35 pesos per share. An equity banker away from the deal says the price adjustment indicates pent up demand for a name in a sector and country that has scarcity appeal. Mexico has logged just one equity deal so far this year, a $217.17 million follow-on offering for steel manufacturer Grupo Simec, compared to Brazil’s 19 deals totaling $6.26 billion, according to Dealogic. This is the first equity offer for a Latin American microfinance institution, but not the first from emerging markets. Indonesia’s Bank Rakyat raised $480 million in equity in October 2003, through UBS and Bahana Securities.”