November 1, 2013
By Ben MillerGrupo 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 successful, but the news on the whole is positive.
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