May 11, 2017
Mexico's Grupo Axo readying 3 billion peso IPO plan
May 11, 2017
Mexican retail brand manager Grupo Axo has revived plans for an initial public offering of up to 3 billion pesos (122 million pounds) that was put on ice in November over fears of a fallout from Donald Trump's U.S. presidential win, sources said on Wednesday.
Mexico's Grupo Axo, an apparel and home goods franchiser that markets brands like Tommy Hilfiger and Victoria's Secret, should launch the IPO towards the end of May, four people familiar with the matter said.
The offer will be underwritten by brokerages GBM and Actinver as well as investment bank Credit Suisse, two sources said. The shares on offer will include parts of stakes owned by Mexican restaurant operator Alsea and Mexican fund Glisco Partners Inc., the two said.
Grupo Axo was not immediately available for comment.
Reuters reported in October that Grupo Axo was planning to raise about 2 billion pesos in an IPO, but the company froze plans in November after Trump's surprise election win, which sent the peso to a series of record lows.
Trump has threatened to pull the United States out of the North American Free Trade Agreement; punish U.S. companies which move to Mexico; and build a wall on the U.S. southern border, fuelling fears of lower growth in Latin America's second largest economy.
Mexico's Jose Cuervo, the world's biggest tequila maker, which had also shelved IPO plans late last year on Trump fears, raised more than $900 million in an IPO in February.
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