NEW YORK, July 2, 2004 – Evidencing renewed investor confidence in Mexico’s economy, Desarrolladora Homex, S.A. de C.V. (NYSE: HXM) has just issued the first NYSE traded and SEC registered initial public offering out of Mexico in five years. Founded in 1989, Homex is the fourth largest and fastest growing homebuilder in Mexico, building entry-level and middle-income housing in more than 30 developments in 14 states throughout the country. The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by partner Michael Fitzgerald, represented the underwriters, Citigroup and Merrill Lynch, in the $160 million offering. The principal strategic investors in Homex are Equity International Properties, Ltd. (controlled by Sam Zell, the prominent US real estate investor) and ZN Mexico Trust (a private equity fund specializing in Mexico.)
Milbank’s Fitzgerald, partner in the firm’s corporate and securities group, who also led the Milbank team representing URBI Desarrollos Urbanos in its recent initial international offering, commented, “Coming on the heels of last month’s URBI Desarrollos Urbanos offering, the timing enabled the company to capitalize on renewed investor interest in Mexico and in the Mexican housing sector. The overwhelming success of the Homex IPO is due in part to the strength of Mexico’s housing industry as well as the solid support of its financial sponsors. The fact that the offering was SEC registered also allowed the Company to tap into the retail investor base in the US”
About the IPO
The $160 million US stock offering by Desarrolladora Homex was underwritten by Citigroup and Merrill Lynch. The public offering price per ADS was $15.80.
The Milbank team representing the underwriters in the United States was led by partner Michael Fitzgerald (New York), with counsel Taisa Markus, associate Frank Vivero and foreign associate Martin Sanchez Breton (all in New York). Ritch, Heather y Mueller, S.C., led by partner Luis Nicolau, acted as legal advisor to the underwriters with respect to Mexican law.
Milbank’s Global Securities and M&A/General Corporate practices are known for developing creative financing structures to meet complex financing needs. The Global Securities Group’s expertise encompasses the full range of capital markets products, including initial public offerings, high-yield bond offerings, project bonds, securitizations, derivatives and synthetic products, equity and debt offerings for both domestic and foreign issuers, issuances of collateralized bond and loan obligations, and other types of highly structured cross-border offerings. Milbank’s lawyers have represented a broad range of major investment and banking firms, issuers across a wide range of industries, domestic and foreign governments and governmental agencies, and other key parties involved in these products.
Milbank’s M&A/General Corporate Group is renowned for its leadership in sophisticated cross-border transactions and combines both the transactional and regulatory expertise necessary to successfully negotiate and close mergers & acquisitions and other transactions across a wide range of industries.
Milbank, Tweed, Hadley & McCloy LLP is a premier global law firm headquartered in New York, with offices in Washington, DC, Los Angeles, Palo Alto, London, Munich, Frankfurt, Tokyo, Hong Kong and Singapore. Milbank is a recognized leader in capital markets, corporate finance, project finance, acquisition finance, and other major fields of legal practice. The firm's practice includes cross-border mergers and acquisitions and global securities transactions as well as assisting multinational clients with their cross border investments. Milbank provides a full range of services to many of the world’s leading financial, industrial and commercial enterprises, as well as governments, institutions and individuals.