Mexican mining, transport and infrastructure company Grupo Mexico is aiming to raise $1.2 billion from an initial public offering of its ITM rail unit. The company hopes to list ITM in the first half of the year and expects the offering to be in high demand.
Ferromex is ITM’s main railroad and the largest in Mexico.
According to Ferromex Chief Executive Rogelio Velez, Grupo Mexico intends to list around 15 percent of ITM stock. This would value the rail unit at around $8.7 billion. GBM Infraestructura and Credit Suisse were underwriters.
Recent legislation has allowed the IPO for ITM. Grupo Mexico and Kansas City Southern have historically dominated the industry. As a result of the new rules, a rail regulator will be created in the coming months. Grupo Mexico controls 75 percent of ITM, with the rest controlled by Mexican billionaire Carlos Slim.Older postNewer post