Mexican real estate firm Cadu raises US$144 mln in market debut

Mexican real estate firm Cadu said on Friday it had priced its initial public offering (IPO) at 18 pesos (US$1.08) per share, raising up to 2.4 billion pesos (US$143.59 million) as it seeks fresh resources to boost growth and pay debt.

Cadu offered about 110.5 million shares in its primary offering, including its greenshoe option, and nearly 23.2 million shares in its secondary offering. The shares were sold in Mexico and on the Latin American Integrated Market, or MILA.

The price was below the 21.50 - 23.50 peso range the firm had estimated in its prospectus.

Cadu, which becomes the fifth IPO on the Mexican bourse so far this year, had sales of 3.19 billion pesos in 2014. It plans to use 300 million pesos from IPO proceeds to pay down debt and use the rest for working capital, purchase of land, and any costs of the issue.