MEXICO CITY, June 30 (Reuters) - Proteak, a Mexican forestry company, said in a regulatory filing on Wednesday that its initial public offering was priced at 10.25 pesos per share, below its original plan.
Proteak (TEAKCPO.MX), which specializes in cultivating teak, will raise around $71 million and float 54 percent of its capital, including overallotment. It had set a price range of between 11.58 pesos and 12.75 pesos.
Its shares were available to institutional investors on Wednesday under a program that will let the country’s pension funds hold a stake in small-cap firms.
The company is offering nearly 89 million CPO shares, each comprised of one Series “T” and two Series “K” shares.
The company hopes to use the fresh capital to expand its land holdings to increase the size of its tree farms.
Proteak went to the market under a stripped-down process that allows small cap companies to list on the stock exchange with minimal costs and disclosure.
Only large, institutional investors may take a stake in companies listed under that process.
Mexican real estate developer Tres Marias and restaurant chain Arrachera House also are expected to go public soon in a transaction similar to Proteak.
$1 = 12.845 pesos Reporting by Gabriela Lopez in Monterrey and Patrick Rucker and in Monterrey; editing by Carol Bishopric