ferromex ITM rail unitMexican miner and infrastructure company Grupo Mexico postponed its plans to launch a $1+ billion initial public offering (IPO) of its rail unit ITM by the end of June, according to a source close to the deal and recently reported by Reuters.

The IPO was planned to take place towards the end of June and raise between over $13 billion pesos.  Grupo Mexico says that the U$1 + billion approx would fund the expansion of its rail network and investment in upgrading its locomotives and rail cars.

This plan has been discussed for some time and is a result of the growth of Mexico’s auto manufacturing industry, which sends thousands of cars north to the US market each year by rail.

Mexico Infrastructure Projects Forum 2015 in Monterrey Nuevo Leon