Mexico IPOs

The so-called Mexican Moment might have lost some of its steam because of the country’s slowing growth prospects, but the country’s equity market has never had it so good.

Even as companies in Brazil and elsewhere in the emerging market world have shelved plans to raise money following this summer’s turmoil, Mexican companies have continued to come to the market. 

Mexico’s equity market is on fire at the moment, enjoying a record year in terms of fundraising. Volaris, an ultra low-cost airline, launched a successful IPO last week and dairy company Grupo Lala is reportedly planning a $700m offering.

Why is the Mexican equity market so hot? Well – its Fibra that’s giving them fever. 

Grupo Lala, Mexico largest milk producer, plans to sell shares in Mexico and abroad in the first initial public offering of a dairy company in the country.

The company didn’t disclose the size of its offering, but Bloomberg, citing two unnamed sources with direct knowledge of the transaction, said Grupo Lala would seek to raise at least US$700m 

Carlos Slim closed the week with a successful $950m IPO of his Sanborns retail and restaurant chain whose tastes reflect the quintessence of the growing Mexican middle class.

Priced at 28 pesos a share, Sanborns see-sawed a little before hitting 28.31 in late trading on Friday. 

Iconic photographs of Emiliano Zapata’s rough-hewn peasant army at the beginning of last century showed the blue-tiled colonial mansion of the Sanborns restaurant and retail store that is one of the best known buildings in the heart of Mexico City.

The rebels were entering what then was the inner sanctum of a minuscule middle class. Nowadays, though no longer a sanctum, Sanborns remains a symbol of middle-class lifestyle that Carlos Slim, the world’s wealthiest tycoon, has expanded into a chain of more than 400 establishments, many of them beacons of well-being in areas that once were on the very wrong side of the tracks.

This week, Slim has decided to return the chain back to the stock market from which he withdrew it six years ago.