About Arke Fibra E and Its Significance
Arke Fibra E, a new investment trust focused on infrastructure and energy, is preparing to list on the Bolsa Institucional de Valores (Biva) in Mexico. The company, backed by infrastructure administrators Indi Infraestructura and Ennova América, aims to raise 2,076 million pesos (approximately 108 million USD) through an Initial Public Offering (IPO). The exact execution date remains unspecified in the national stock market.
Unique Hybrid Structure
According to its placement prospectus, Arke Fibra E represents an innovative model in the Mexican infrastructure market due to its unique hybrid structure, combining financial and strategic approaches.
The company’s primary focus is to create value for shareholders without being confined to a single developer’s possibilities. Instead, Arke Fibra E seeks established and attractive assets that can be incorporated into the trust’s portfolio.
Initial Assets
Arke Fibra E’s initial assets will include Transbusmex Ecatepec and Urbanbus, which hold concessions for lines 1 and 2 of the Mexibús public transportation system, respectively. Arke plans to pay 624 million pesos (approximately 33 million USD) for 100% of Transbusmex’s shares and 200 million pesos (approximately 10 million USD) for 99.9% of Urbanbus’s stock, currently held by Indi Infraestructura.
An additional 156 million pesos are allocated for offering expenses, while 1,092 million pesos will be used for corporate purposes, including paying off the debts of both concessions.
Co-founders and Their Roles
The new vehicle, Arke Infraestructura y Energía, will be co-founded equally by Indi Infraestructura and Ennova América. Indi will provide the initial assets, while Ennova will act as the administrator.
Arke considers the involvement of both companies a strength, as Indi will grant Arke first-right-of-refusal for potential future properties, and Ennova will focus on third-party eligible assets.
Project Pipeline
Arke has a project pipeline available for the next five years, with a capital expenditure (capex) exceeding 30,000 million pesos, according to information published on Ennova América’s website.
Timing and Recent Developments
The IPO process occurs as other Fibra E entities adjust their portfolios. For instance, Fexi and Fibra Mx recently acquired a majority stake in Grupo México’s Guanajuato toll road business for 7,700 million pesos.
The Fideicomiso de Inversión en Energía México (Fiemex), managed by Mexico Infrastructure Partners, raised 4,500 million USD through an IPO on the Mexican Stock Exchange as part of the federal government’s plan to finance the purchase of 13 electric power plants from Spanish company Iberdrola.
Mexican Market and Recent IPOs
The Mexican market has experienced a drought of new stocks for several years. However, various real estate investment trusts have successfully raised funds from public investors, with most choosing Biva for their placements. Examples include FIBRAeMX, Xinfra Fibra E, Fibra Orión, Agro Fibra, and Fibra Soma, some of which have had subsequent placements.
Intermediaries and Agents
BBVA México will act as the underwriter for Arke Fibra E’s offering, collaborating with DP Diligentia Partners as the structuring agent.
Key Questions and Answers
- What is Arke Fibra E? Arke Fibra E is a new investment trust focusing on infrastructure and energy, backed by Indi Infraestructura and Ennova América.
- How much capital is Arke Fibra E aiming to raise? The company intends to raise 2,076 million pesos (approximately 108 million USD) through an Initial Public Offering (IPO).
- What are Arke Fibra E’s initial assets? The initial assets include Transbusmex Ecatepec and Urbanbus, which hold concessions for lines 1 and 2 of the Mexibús public transportation system.
- Who are Arke Fibra E’s co-founders, and what are their roles? The co-founders are Indi Infraestructura and Ennova América. Indi will provide the initial assets, while Ennova will act as the administrator.
- What is Arke Fibra E’s project pipeline? Arke has a project pipeline available for the next five years, with a capital expenditure (capex) exceeding 30,000 million pesos.
- Who is underwriting Arke Fibra E’s IPO? BBVA México will act as the underwriter for Arke Fibra E’s offering, collaborating with DP Diligentia Partners as the structuring agent.
