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(Bloomberg) — Esentia Energy Development SA de CV is seeking to raise around $610 million, much of it through an initial public offering in Mexico, as the midstream gas company looks to tap demand from firms moving operations closer to US customers.
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The Partners Group Holding AG-backed company will offer 186 million new shares, while a leading shareholder will sell another 38 million, according to a company statement on Monday. The shares will be sold in a global offering at a range of $2.70 to $3.90 each.
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Books are expected to close on Nov. 19, the company said in a filing to the local stock exchange.
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Esentia and some shareholders will also give advisers the option to sell another 33.6 million shares at the offer price abroad and in Mexico.
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The company is looking to capitalize on what it expects to be an increase in nearshoring, where manufacturing moves to Mexico to capitalize on its proximity to the US. The company said it will look to satisfy growing industrial demand in the Central and Central-West regions of Mexico.
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It runs the largest private gas network in Mexico, transporting gas from Waha, Texas through the center of the Latin American country, according to an October investor presentation. It counts utility Comision Federal de Electricidad as a client and also sells gas to private customers via its Esentia Gas subsidiary.
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Partners Group has an indirect 84.5% stake in Esentia, according to an earlier filing. The Abu Dhabi sovereign wealth fund, Mubadala Investment Co., owns another 11%, while Mexican infrastructure firm Fermaca Global controls 4.5%.
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Esentia will use proceeds from the IPO and placement for purposes including financing its expansion and paying down debt, the presentation shows. The company is undergoing a three-phase expansion plan that will add capacity of 660 million cubic feet per day with an estimated investment of $680 million.
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The transaction comes amid a flurry of activity in Mexico’s IPO market, which had been experiencing a prolonged drought. Mexican airline Grupo Aeromexico SAB and a group of shareholders recently raised around $300 million. And real estate trust Nearshoring Experts & Technology SC, which is known as Fibra Next, aims to offer 100 million shares and raise around 10 billion Mexican pesos.
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Casa de Bolsa BBVA Mexico SA de CV, Goldman Sachs Mexico Casa de Bolsa SA de CV and Scotia Inverlat Casa de Bolsa SA de CV are working on the offering, the filing shows. Shares are expected to begin trading on the BMV under the symbol ESENTIA.
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