Hoteles City Express Announces Successful Global Primary Equity Offering for Ps.2,350 Million
MEXICO CITY, Oct. 9, 2014 /PRNewswire/ -- Hoteles City Express, S.A.B. de C.V. ("Hoteles City" or the "Company") (BMV: HCITY), the leading limited-service hotel chain in Mexico, announced today the successful pricing of its primary global offering of 100,000,000 shares of common stock at a price of Ps.23.50 per share, resulting in gross proceeds to the Company of Ps.2,350 million, excluding the overallotment option. The Company granted the underwriters an overallotment option to purchase up to an additional 15,000,000 shares.
The offering consisted of a public offering in Mexico, as well as a private offering in the United States pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act") and outside the United States and Mexico pursuant to Regulation S under the Securities Act. Approximately 64% of the shares were allocated through the international offering and the other 36% through the public offering in Mexico.
The Company intends to use the net proceeds from the global offering to continue with its plans for the expansion and development of new hotels, including for the development, opening, operation and commercialization of future hotel projects. Approximately 10% of the net proceeds are expected to be used to continue to develop the Company's administrative and operating platforms, as well as for general corporate purposes.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States, and it does not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. Any public offering of securities in the United States must be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and its management, as well as its financial statements. This press release is formulated in accordance with Rule 135(e) of the Securities Act.
About Hoteles City Express:
Hoteles City Express is considered the leading and fastest-growing limited-service hotel chain in Mexico, in terms of number of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City Express specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain geared towards the domestic business traveler. With 90 hotels in operation located throughout Mexico, Costa Rica and Colombia, Hoteles City Express operates three distinct brands: City express, City express Suites and City express junior to serve different segments of its target market. In June 2013, Hoteles City Express successfully completed its IPO and began trading on the Mexican Stock Exchange under the ticker symbol "HCITY".
Forward-Looking Statements:
This press release may contain forward-looking statements that do not relate strictly to historical or current facts. These statements often use words like "expects," "anticipates," "believes," "estimates," "targets," "intends," "plans," "predict," and other similar expressions or future or conditional verbs. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Hoteles City's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. Hoteles City is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
For more information please visit our Investor Relations website: www.cityexpress.com/en/inversionistas
SOURCE Hoteles City Express, S.A.B. de C.V.
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