On July 13, RLH Properties successfully carried out a follow-on offering for a total of Mx$1,338'430,880.95
(approximately US$73.1 million), including overallotment, which represents a 48.49% of RLH Properties' equity.
This is the first equity capital offering in Mexico after Brexit and the hike of interest rates by the Central Mexican
Bank (Banco de México). Despite market conditions, the transaction generated a lot of interest and long-term
commitments from investors, proving confidence in RLH Properties and its management team. In particular,
confidence by institutional investors who acquired the largest percentage of the offering (especially, Mexican pension
funds – "Afores").
Primary public offering for a total amount of Mx$1,338,430,888.95.
Price per share was settled at Mx$15.45, a 2% above the pricing at the IPO. A total of 86,629,831 shares were
issued.
Through this offering, RLH Properties converts itself from a SAPIB to a SAB in record time. This case is an example
of the opportunities that mid-cap companies can obtain financing through the Mexican Stock Exchange (BMV, by its
Spanish initials).
Evercore Partners Mexico acted as Financial Advisor. Evercore Casa de Bolsa acted as Leading Coordinator and
Underwriter of the public offering, and Casa de Bolsa Banorte Ixe together with BTG Pactual Casa de Bolsa acted as
Underwriters.
Mexico City -- On July 13, RLH Properties successfully carried out a follow-on offering for a total of
Mx$1,338'430,880.95 (approximately US$73.1 million), including overallotment, which represents a 48.49% of RLH
Properties' equity. This is the first equity capital offering in Mexico after Brexit and the hike of interest rates by the
Central Mexican Bank (Banco de México). Despite market conditions, the transaction generated a lot of interest and
long-term commitments from investors, proving confidence in RLH Properties and its management team. In
particular, confidence by institutional investors who acquired the largest percentage of the offering (especially,
Mexican pension funds – "Afores").
The net proceeds of the follow-on will be used in the construction of the One&Only Mandarina Hotel to be located on
a 34-hectare lot on the Nayarit Riviera. The net proceeds could also be used on potential investments in the Four
Seasons Hotel in Mexico City, owned by RLH Properties, as well as towards potential acquisitions of high-end hotels
reinforcing, therefore, RLH Properties' positioning as a reference in the luxury hotel sector.
It is important to consider that RLH Properties debuted in the Mexican Stock Exchange last November as an
Anonymous Company of Investment Promotion in the BMV (SAPIB in Spanish), taking advantage of the
modifications in the BMV regulation which facilitate the access of small and mid-cap companies to the BMV. After
only eight months of RLH Properties' IPO, the company has now become a regular Listed Company (SAB in
Spanish). RLH Properties is now a clear example of how these mid-cap companies can successfully access public
market to obtain financing in Mexico.
On behalf of RLH Properties' team, we want to thank all the investors who participated in this offering, as well as
our Underwriters (Evercore, Banorte and BTG Pactual) and Advisors (Galicia Abogados, Greenberg Traurig and
PricewaterhouseCoopers).