Funds from GMéxico Transportes IPO to finance acquisition

Friday, November 10, 2017

GMéxico Transportes (GMXT), the transportation unit of Mexican conglomerate Grupo México, has raised 19bn pesos (US$996mn), including the over-allotment option, in a simultaneous IPO on the local stock exchange and abroad.

About 12.7bn pesos of that amount were raised in the Mexican stock exchange (BMV), according to an official document.

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The IPO involved a total of 603.1mn shares, sold at 31.5 pesos each. Based on the original prospectus for the IPO, the company had estimated a sale price range of 31.5 to 39 pesos.

Without considering the over-allotment option, the firm raised 16.5bn pesos.

The proceeds from the offering will be used to fund the acquisition of US railroad company Florida East Coast Railway, a deal Grupo México closed earlier this year for US$2.1bn.

As part of the IPO, Grupo Carso and Banco Inbursa's subsidiary Sinca Inbursa sold 101.5mn shares of the 8.25% stake they owned in the transportation company, considering the over-allotment option.

The IPO was coordinated by BBVA Bancomer and Credit Suisse.

GMéxico Transportes is the largest railway company in Mexico. Its subsidiaries include Ferromex, Ferrosur, Intermodal México and Texas Pacífico.