Spain (Washington Insider Magazine)— Sacyr has launched a capital raise of up to 66.7 million shares with a market value of 244 million euros, or 9.6% of its share capital, to promote the development of its highway concessionaire projects around the world.
Private Placement for Qualified Investors
The capital increase will be executed through a private placement targeted exclusively at qualified investors. JP Morgan, Société Générale, Banco Santander, and CaixaBank have been commissioned to coordinate the operation, which will be conducted via an accelerated demand prospecting process. Orders will be accepted starting this afternoon until 8:00 a.m. on May 24, 2024, with the final results to be announced thereafter.
Allocation of Funds
Sacyr plans to allocate the raised funds to various international projects, including the Peripheral Road Ring in Peru, the I-10 highway in the United States, and the Via del Mare and A-21 in Italy. Additionally, the emphasis will be on long-term ‘greenfield’ projects, which include the creation of new assets with little or no demand risk, especially in English-speaking nations with stable currencies and local markets. These projects are estimated to yield yearly returns of 18% to 20%.
Key Stakeholder Participation
Sacyr’s president, CEO, and co-founder, Manuel Manrique, who owns 1.2% of the company’s capital, and proprietary director and co-founder, José Manuel Loureda, who indirectly owns 7.3%, have both expressed their intent to participate in the capital increase with investments of €2 million and €6 million, respectively. Nortia Capital will also subscribe to new shares to maintain its current stake.
Strategic Growth and Future Plans
According to Eldebate, the capital increase is part of Sacyr’s strategy to support its planned growth, to reach €2.6 billion in invested equity by 2027, a 60% increase from present levels. The company plans to manage investments reaching €30 billion by 2027, a 50% increase from the end of last year, according to its strategic plan.
Placement Contracts and Trading
Sacyr has signed a placement contract with the coordinating banks, promising not to sell the new shares for 180 days from the date of the deal, with some typical market exclusions. The new shares are planned to be allowed for trade on the Madrid, Barcelona, Bilbao, and Valencia stock exchanges on Friday, May 24, 2024, with trading beginning Monday, May 27, 2024. These new shares will have the same rights as current shares and will be recorded as book entries in Iberclear’s accounting records.
