(Bloomberg) -- Mexican property developer Corporacion Inmobiliaria Vesta SAB is looking to raise as much as $150 million as soon as Thursday in its second follow-on US stock offer this year.
Vesta is seeking to sell up to 4 million American depositary receipts, equal to 40 million Mexican shares, in order to fund the purchase of more facilities and land, according to a filing with the US Securities and Exchange Commission that did not specify the timing of the sale. Bankers will price the offer this week, according to people familiar with the deal who requested anonymity since they were not authorized to speak to the media.
The sale comes in the wake of a botched IPO last week by Fibra Next, which includes assets belonging to Fibra Uno Administracion SA, Latin America’s biggest real estate investment trust. Investors had appeared to free up cash for the offer of shares in Fibra Next by selling stock in Vesta and industrial-focused real estate investment trust Prologis Property Mexico last week. Now, Vesta looks to be swooping in to capture funds investors put aside for Fibra Next.
“The timing of this transaction seems quite opportunistic with the delay of Fibra Uno’s listing of its industrial assets with Fibra Next,” Bradesco BBI strategist Roldolfo Ramos wrote in a note. “We believe there is likely to be demand for both transactions considering the strong long-term outlook that industrial assets enjoy in Mexico.”
A representative for the company declined to comment on the timing of the deal. Vesta’s US-traded shares slipped about 1% Wednesday, while its stock in Mexico fell as much as 2%, leading losses on the country’s benchmark index.
Vesta raised $446 million earlier this year, the most by a Mexican company in the US in nearly 11 years, as it tapped investor optimism over a factory boom in Latin America’s second-largest economy. Fibra Next was forced to delay the IPO after a last-minute snag over its tax status.
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