Mexican airline Interjet plans $1 billion IPO, wants to start flying to U.S.
Skift Take
Raising money to expand into U.S. and competing against the entrenched biggies flying cross border will be Interjet's aim.
ABC Aerolineas SA, the operator of low-cost Mexican airline Interjet, plans to raise as much as $1 billion in an initial public offering after backing away from selling shares in 2011.
The owner of Mexico’s No. 2 airline by passengers expects to sell stock after September, Chairman Miguel Aleman Velasco said today in an interview in Mexico City. The company scrapped a planned IPO in June 2011 after a slumping Mexican market and higher fuel costs weakened investor demand.
ABC Aerolineas intends to sell as much as 25 percent of the company in the IPO. The airline plans to triple its fleet size to 111 aircraft by 2015 from the current 37 as part of a $4 billion expansion plan financed by bank loans and the Aleman family, he said.
“Obviously we’re not going to try to be part of the Mexican stock exchange in order to sell a huge stake, or to get just a little bit of money,” Aleman said.
