UPDATE 1-Mexico's Slim ups stake for sale in retailer

Mon Jan 28, 2013 2:58pm EST

MEXICO CITY Jan 28 (Reuters) - Sanborns, a cafe and retail chain owned by Mexican tycoon Carlos Slim, has increased the size of its planned offering, aiming to raise nearly $1 billion.

It said in a filing with the Mexican stock exchange that it plans to offer 375.4 million series B-1 shares under the global offering. It also plans to grant options to purchase a further 56.3 million shares to purchasers and underwriters, putting the overall offering at about 18.1 percent of the group, according to Reuters' calculations.

An earlier filing had said the group was seeking to sell a 15.2 percent stake.

Sanborns' shares are expected to sell at a price range of 27 to 32 pesos per share for the upcoming relisting, according to the documents on the stock exchange's website on Monday.

The mid-point of the offering values the company at around $5.5 billion.

Grupo Sanborns expects to raise around 10.8 billion pesos ($850 million) based on the mid-point of pricing guidance, the company said in a statement. Including a greenshoe overallotment, the listing could raise some 12.5 billion pesos ($980 million), the company said.

Shareholders are set to meet on Tuesday to sign off on the offer.

The share offering is open to domestic and international investors, and proceeds will be used to fund expansion plans, including possible acquisitions. Credit Suisse, Morgan Stanley and Citi are the bookrunners.

Sanborns, which operates coffee shops, restaurants, department stores and music shops, delisted in 2006 after it was absorbed by parent Grupo Carso.

Sanborns reported earnings of nearly 3 billion pesos for last year, up from 2.7 billion pesos in 2011. Sales last year rose 8.2 percent to 39.41 billion pesos.

Slim, who Forbes ranks as the world's richest man, controls a business empire that includes Latin America's biggest telecommunications company, America Movil, as well as banking, construction, real estate and mining companies.

The Sanborns offer, along with new issuance from Pepsi bottler Cultiba, is helping Mexico's stock exchange to a strong start to 2013.

Last year the stock exchange saw 11 secondary offerings and five initial public offerings that raised over $9 billion, according to Thomson Reuters data.