The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Equity capital markets: Mexican issuers return to IPO market

First debut deals in nearly two years; Bankers expect more regional issuance

of Chedraui’s stock distributed locally, compared with historical average of 25%

of Chedraui’s stock distributed locally, compared with historical average of 25%

Two deals in a matter of days hardly constitute a flood but in Mexico’s equity markets they mark the end of a long drought. Last month retailer Grupo Comercial Chedraui and investment fund and brokerage house Actinver launched the country’s first IPOs in nearly two years, with bankers hopeful that more deals will follow, market conditions permitting. First out of the block was Chedraui, the fourth-biggest supermarket chain in Mexico. It raised Ps5.2 billion ($404 million), including the greenshoe over-allotment option, with the shares priced at Ps34 – the lower end of the pricing range. The tactic worked as the shares traded up 5% the following day.

The deal’s success was an important step not just for Mexico but also for the equities market in the region overall, given how poorly IPOs out of Brazil have performed this year. While transactions generally need to be of a certain size given the premium that investors are placing on liquidity in these volatile times, Chedraui proved that mid-sized deals can fly as long as the company has a good story to sell.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree