UPDATE 2-Unit of Spain’s OHL readies Mexico IPO

* Unit of Spain’s OHL plans Mexican market debut

* Proceeds to fund infrastructure projects

* IPO may happen before year ends
(Recasts; Adds CEO comments, infrastructure background)

MEXICO CITY, Oct 20 (BestGrowthStock) – A unit of Spanish
construction group Obrascon Huarte Lain (OHL) seeks to offer
17.25 billion pesos ($1.4 billion) in shares in the Mexican
market to fund road projects in Mexico.

OHL’s (OHL.MC: ) subsidiary OHL Concesiones Mexico wants to
offer up to 661.25 million shares in Mexico, the company said
in a filing with the Mexican stock exchange on Wednesday. It
will also offer up to 925.75 million shares to foreign
investors.

Greenshoe, or the option for underwriters to sell
additional shares, is included in both cases.

Shares have a price range of between 15 and 45 pesos, the
company added, and the public offering is expected to happen
during the first half of November, after company officials tour
international financial hubs to promote the listing.

OHL Concesiones Chief Executive Felipe Ezquerra told
Reuters that a chunk of the offering’s proceeds will be put
towards current road projects the company is building across
the country and to pay down debt with its Spanish parent.

“The Mexican market is very attractive,” he said.

Construction analysts have said roads and other massive
infrastructure projects should pick up next year as politicians
pump up spending to win support ahead of the 2012 presidential
elections.

President Felipe Calderon could also prioritize delayed
infrastructure projects as he seeks to seal his legacy before
leaving office.

Parent OHL rose 4.81 percent to 24.82 euros on Wednesday.
($1 = 12.43 pesos)
(Reporting by Cyntia Barrera Diaz; editing by Gunna Dickson)

UPDATE 2-Unit of Spain’s OHL readies Mexico IPO