globcashfirm dedicated to the pledge business with operations in Mexico and Guatemalawill launch the next May 30 its initial public offering (IPO) of shares, with which it will seek to raise capital by up to 1,150 million pesos.
The company, directed by Roberto Arámburo, has set the sale price of each share in a range of 10 and 11.50 pesosso its objective is to raise between 1,000 million pesos and 1,150 million pesos, the latter amount considering the option of over-allotment and the low range of the offer.
According to the placement prospectus, the pawnbroker will seek to place 100 million shares, without considering the over-allotment exercise, and up to 115 million if the over-allotment option is exercised, with which it would be placing in the hands of the investing public between 30.24% and 33.26% of its share capital.
Globcash will be made public having an approximate valuation of 3,600 million pesos.
“We are ready to offer Mexican investors Globcash shares, convinced that this market entry will represent a before and after in the country’s stock market life,” said Roberto Arámburo, general director of the pledge company through a statement.
The Globcash IPO stands out because it is the first IPO in Mexico, after almost two years without an IPO. It will also bring a new business up to now not represented in the local stock market.
Company data indicates that, in Mexico, more than 13 million people resort to pawning as one of their main ways of obtaining financing. While more than 50 million people do not have access to the banking system in the country.
With the resources that the company obtains from its IPO, it plans to finance the opening of 300 new pawn shops around the Mexican Republic and expand its operations outside the country through inorganic purchases.
The company, founded in 1985, operates 194 pawn shops under the Casa Mazatlán brand in Mexico, in the states of Sonora, Sinaloa, Durango, San Luis Potosí, Veracruz, Baja California Sur, Nayarit, Michoacán, Oaxaca, Tabasco, Yucatan, Quintana Roo, Campeche and Chiapas.
In addition, it operates 22 locations in Guatemalawhere it has been present since 2008.
“The Globcash business is part of a defensive sector with limited exposure to risk and that can represent a good refuge for investors against inflation. Its model allows the company to offer non-bank loans, without requiring its clients to have a credit history or proof of income. The loans are granted under preferential conditions and flexibility in payments in exchange for the deposit of physical guarantees,” the company said in a notice.
In it, it adds that 30% of its inventory, equivalent to approximately 56 million pesos, is made up of gold and silver reserves, the main financial instruments of refuge in times of economic contraction.