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Mexico: Grupo Mexico hopes to raise $1.3 billion in rail unit IPO

By  |  March 25, 2015

Mexican mining, transport and infrastructure company Grupo Mexico is hoping to raise $1.3 billion from an initial public offering of its ITM rail unit, one of its senior executives said on Wednesday.

The company still hopes to list ITM in the first half of the year and expects the offering to be in high demand, Ferromex Chief Executive Rogelio Velez told Reuters in an interview. Ferromex is ITM’s main railroad and the largest in Mexico.

Grupo Mexico intends to list around 15 percent of ITM stock, Velez said. This would value the rail unit, a key beneficiary of Mexico’s auto manufacturing boom, at around $8.7 billion.

He added that Mexico’s GBM and Credit Suisse were underwriters.

 

Full Content: Reuters

 

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