MONTERREY, MEXICO (April 30, 2 p.m. ET) — Mexican conglomerate Alfa SAB de CV says its petrochemicals subsidiary Alpek SAB de CV has completed a public offering of its shares in Mexico and on international markets.
Alpek's shares were quoted on the Mexican Stock Exchange as of April 26 and Alfa said in a filing with the exchange that proceeds from the share placement could amount to $793 million, if the over-allotment option is exercised.
“The primary reason [for floating Alpek] is that Alpek needs equity capital to undertake a number of growth projects that the company is currently contemplating,” Enrique Flores, Alfa's vice president of corporate communications, told Plastics News in an April 27 telephone interview.
Asked to be specific about the “growth projects” under consideration, Flores said stock market regulations prohibited him from disclosing “certain information.”
In its filing Alfa describes Alpek as the largest non-state-owned petrochemicals company in Mexico and the second largest in Latin America. Both Alfa and Alpek are headquartered in the municipality of San Pedro Garza García, near Monterrey in northern Mexico.
According to Alfa, Alpek operates two business units, polyester chain products, including purified terephthalic acid, PET and polyester fibers; and plastics and chemicals, including polypropylene, EPS, caprolactam, polyurethanes and other specialty and industrial chemicals.
It adds that Alpek is one of the “leading producers of PTA and PET in the world. The company operates the largest EPS plant in the Americas and one of the largest polypropylene plants in North America.”
Alpek, according to Alfa, is the only producer of caprolactam in Mexico. It reported 2011 sales of $7.3 billion and earnings before interest, taxes, depreciation and amoritization of $796 million.
It operates 20 plants in Mexico, the United States and Argentina and employs 4,500.