Mexico constructor ICA plans share offer to finance growth

Mexico’s largest construction company, Ingenieros Civiles Asociados (ICA), plans to offer new shares worth about US$550 million domestically and in the United States to finance growth.

ICA’s shareholders are to vote whether to approve the share offer proposal on August 30.

“The company plans to use the net resources obtained from the global offer to participate in existing projects and new projects awarded to ICA,” the company said in its prospectus.

ICA said August 14 it would use part of the proceeds toward its investment with Goldman Sachs to run four existing toll highways in a US$4.1 billion contract won the previous week. Another part of the proceeds will be used to buy land reserves for the expansion of its home building unit, ViveICA.

ICA has been busy snatching up major infrastructure projects in recent years as the government focuses on revamping the country’s highway system and constructing big hydroelectric projects to provide energy to more people and industries.

A consortium led by ICA is the low bidder to build the 750-MW La Yesca hydroelectric project on the Santiago River. (HNN 8/8/07) The lowest of three bids, at US$768 million, was presented by ICA, Promotora e Inversora Adisa, La Peninsular Compania Constructora, and Constructora de Proyectos Hidroelectricos. The winning bid is to be announced September 6.

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