By Ben Miller
Equity market news: Cream of the crop
A well-bid IPO by Mexican dairy producer Grupo Lalabcould spur other consumer-focused companies to raise capital in the equity market. But Brazilian firms are having less luck
Grupo Lala’s $1.01 billion-equivalent mid-October
IPO underscored a trend for well-known, liquid Mexican firms
finding enthusiastic investor reception in equity markets. The
issue was priced at the top of its range, after investors put
in orders for nearly eight times the deal size. Local accounts
picked up more than half of the shares.
The deal gave the dairy company capital to continue expanding,
and could encourage other consumer-oriented firms. Grupo
Alfa’s Sigma Alimentos food products unit, which
has indicated IPO plans as soon as this year, is one candidate.
Other Mexican issuers have not been as...
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